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brucereifel
New Member

If I am under 59 1/2 and took a distribution from 2 IRA accounts under The CARES act. Where do I add this disclosure on my tax form so that I avoid the 10% penalty?

 
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DaveF1006
Employee Tax Expert

If I am under 59 1/2 and took a distribution from 2 IRA accounts under The CARES act. Where do I add this disclosure on my tax form so that I avoid the 10% penalty?

If using Turbo Tax online, to enter your 1099R retirement and pension income in Turbo Tax:

  1. Go to federal>wages and income>all income
  2. Retirement plans and Social Security>show more 
  3. Ira (401K), pension plan Withdrawals(1099R) Start
  4. Here you will enter your 1099R.  
  5. After entering your 1099R, there will be followup screens. There will be one that asks if you took this money before 59 1/2.
  6. Then it will ask if you have a qualified or non-qualified IRA. 
  7. Next screen will ask tell us if any of these uncommon situations apply.
  8. Here you would check the first choice. I  took out this money because of a qualified disaster (includes COVID-19)
  9. Even though you have entered this, you will receive a message stating that the IRS instructions relating to COVID related issues aren't ready yet. Don't panic but revisit your return periodically for the update.
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1 Reply
DaveF1006
Employee Tax Expert

If I am under 59 1/2 and took a distribution from 2 IRA accounts under The CARES act. Where do I add this disclosure on my tax form so that I avoid the 10% penalty?

If using Turbo Tax online, to enter your 1099R retirement and pension income in Turbo Tax:

  1. Go to federal>wages and income>all income
  2. Retirement plans and Social Security>show more 
  3. Ira (401K), pension plan Withdrawals(1099R) Start
  4. Here you will enter your 1099R.  
  5. After entering your 1099R, there will be followup screens. There will be one that asks if you took this money before 59 1/2.
  6. Then it will ask if you have a qualified or non-qualified IRA. 
  7. Next screen will ask tell us if any of these uncommon situations apply.
  8. Here you would check the first choice. I  took out this money because of a qualified disaster (includes COVID-19)
  9. Even though you have entered this, you will receive a message stating that the IRS instructions relating to COVID related issues aren't ready yet. Don't panic but revisit your return periodically for the update.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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