1099-R Disaster

[TASHASAKURA]

My job offered a cares act withdrawal from our 401K and I didn't have much in there, to begin with. So, I withdraw the max amount of $1,500 and I received my 1099-R. I am not sure how to file it because I have never filed this form before. I needed for COVID since my hours were reduced. Any insight on this please and thank you

[LynnN82]

That withdrawal will not be subject to the 10% penalty for early withdrawal and, if you need it, up to three years to pay any additional income tax liability.

Follow these steps to report information from a Form 1099-R in TurboTax after logging in to your return:

Start in Federal Taxes,

Go to Wages and Income, and select what to work on

Then, scroll down to Retirement Plans and Social Security,

click on IRA, 401(k), Pension Plan . . . etc.  

Follow the instructions for entering information from your 1099-R

You should check this link on the IRS website for more information about the tax liability and possible payment terms.

Major changes to retirement plans due to COVID-19