I took an early withdraw from my 401k under the cares act (impacted from covid) but while filing my taxes, i was still charged the 10% early withdraw penalty?

[DoninGA]

Did you indicate the the withdrawal was due to Covid-19?

What is the code in box 7 of the Form 1099-R?  Was the IRA/SEP/SIMPLE box checked?

[macuser_22]

Delete the 1099-R and re-enter and answer yes - it is COVID related and answer the remaining COVID questions.

[esquivel8310]

I did indicate it was covid related 

box seven has a 1 in it 

Ira box isn’t checked.  
I have filed my taxes already thinking it had taken properly but after reviewing I see i am being penalized. My  return was accepted, Any advice on how to amend? 
thanks for your help 

[DoninGA]

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@esquivel8310 wrote:

I did indicate it was covid related 

box seven has a 1 in it 

Ira box isn’t checked.  
I have filed my taxes already thinking it had taken properly but after reviewing I see i am being penalized. My  return was accepted, Any advice on how to amend? 
thanks for your help 

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Verify the penalty was assessed on your tax return.  Look at Schedule 2 Line 6 of your federal tax return, this amount would flow to Form 1040 Line 23.  If there is an amount entered then you were penalized.  If no amount, you were not.

Using your information I entered a Form 1099-R and there was no penalty assessed after indicating this was Covid-19 related and all the distribution was Covid-19 related.

If the return is accepted you will have to amend your original tax return. An amended return, Form 1040X, can only be printed and mailed to the IRS if the original tax return was not e-filed. The IRS will take up to 16 weeks or longer to process an amended tax return.

Before starting to amend the tax return, wait for the tax refund to be received or the taxes due to be paid and processed by the IRS.

See this TurboTax support FAQ on amending a tax return originally completed and filed using the 2020 TurboTax online editions - https://ttlc.intuit.com/community/amending/help/how-do-i-amend-my-turbotax-online-return/01/27577

The IRS Form 1040-X for amending a 2020 tax return is scheduled to be available on 03/25/2021 (subject to change)

[macuser_22]

The amend function will be available after March 25.

Do not rush to amend - no hurry. You have 3 years to amend and amended returns are taking 4-6 months or longer to be processed so waiting a few weeks will make little difference and amending too soon might just compound the problem.

To amend your 2020 tax return:


-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.


See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return

[esquivel8310]

I appreciate everyone’s help here. 
Apparently, I needed to fill out a 8915-E.  
For $150, I’m amazed that turbo tax doesn’t even mention it while “getting my maximum refund back” SMH. I never saw one pop up, other than the disaster option which did nothing while filing 🤔. Idk man 
Guess I’ll be paying $10k now and hopefully I will get reimbursed some time this summer after my amended return clears. 

thanks again for helping