If I took out a 401k withdrawal for a qualified disaster (had Covid in June), under the Cares Act, how do I update TurboTax so Im not charged an early withdrawal penalty?

[mberry12]

Currently I am being charged a penalty for the 401k withdrawal. But since this was due to Covid, there should be no penalty. Apparently at the time of the current release of TurboTax, Covid was not included in the software. So, I'm being charged a penalty, when I shouldn't be.

[SteamTrain]

Correct...you just don't file until the software is updated to include the form for you to fill out that exempts you from that penalty.

The IRS itself has not even released that form.....when?  No help there as they don't say.  I expect it might not be until mid-late February...but that's a guess..

[mberry12]

Thanks for the info.

Do you, by chance, know that form name or number so I can check periodically to see when its released?

[SteamTrain]

It's an 8915-E.

After the IRS releases it, it may take a week or 2 for it to show up in the software...because the IRS and TTX have to test the software's implementation of that form, and all it's boxes/lines, to ensure it operates properly and sends the correct data to the IRS on any file submitted..