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I quit my job in 2019 and unable to get a job in 2020 due to COVID. I withdrew 30K from my Traditional IRA to meet the family expenses. Am I eligible under CARES act?

 
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1 Reply
LenaH
Employee Tax Expert

I quit my job in 2019 and unable to get a job in 2020 due to COVID. I withdrew 30K from my Traditional IRA to meet the family expenses. Am I eligible under CARES act?

Yes. You are a qualified individual if:

  • You, your spouse, or dependent are diagnosed with COVID-19
  • You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
  • You had hours reduced due to coronavirus
  • You are unable to work due to your child care closing or reducing hours

You can input your 1099-R in TurboTax by following these steps:

  1. Open your return. 
  2. Search 1099-R with the magnifying glass tool on top of the page.
  3. Click on the Jump to 1099-R link at the top of the results.
  4. Answer yes to the question Did you get a 1099-R in 2020?
  5. Click continue to the page Get ready to be impressed.
  6. Follow the on-screen instructions.
  7. On the page Tell us if any of these uncommon situations apply, put a check mark next to the statement I took out this money because of a qualified disaster (Covid-19). I have attached a picture at the bottom of my post for further guidance. 

 

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