The screen to designate your 1099-R withdrawal as money taken out due to Covid-19 is found on the 1099-R input screen. Although the forms are not available to be e-filed yet, you may enter your information now and revisit the area in TurboTax at a later date. Once you elect the distribution was due to Covid-19 and the IRS tax updates are complete, you will be able to make your election at that time.
You can input your 1099-R in TurboTax by following these steps:
- Open your return.
- Search 1099-R with the magnifying glass tool on top of the page.
- Click on the Jump to 1099-R link at the top of the results.
- Answer yes to the question Did you get a 1099-R in 2020?
- Click continue to the page Get ready to be impressed.
- Follow the on-screen instructions.
- 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).
Please keep in mind that the 10% early withdrawal penalty may be waived on up to $100,000 of retirement funds withdrawn if you are a qualified individual impacted by coronavirus.
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.
The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act. So this form cannot be included in the TurboTax program. You will not be able to proceed until the form is available.
The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.
We estimate it will be sometime in February 2021 before the form is available. You can watch this link for the form availability. Currently, the form is not listed here since there is no estimated date. Once there is, you will find the form listed with the date available.
Additionally, the IRS will not start processing returns until February 12, so waiting for this form is not slowing down the processing of your return.
Please sign-up here and we will email you once the form is live.
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