Does WI return now allow for Covid 401k distribution? "We're still working on updates related to Penalties on IRA's, retirement plans... that qualify for Covid relief."

[DavidD66]

Wisconsin Act 185 adopted a number of changes to conform Wisconsin’s income tax laws to changes in Federal tax law.  Among them:

• Retirement Accounts – The CARES Act provided several changes for retirement accounts including suspending required minimum distributions, increasing 401(k) loan limitations, and creating a coronavirus-related distribution.
• The coronavirus-related distribution allows for up to $100,000 to be withdrawn from a retirement account exempt from the 10 percent penalty tax. To qualify, the individual or their spouse must have been diagnosed with COVID-19 or experienced adverse financial consequences caused by COVID-19. Any amount of the distribution that is taxable can be recognized over the next three years or the taxpayer can elect to treat the distribution as taxable in 2020.
• For Wisconsin income tax purposes, otherwise applicable penalties on distributions from a retirement account qualified under the IRC will be waived for tax year 2020. In addition, for Wisconsin income tax, these distributions, subject to a number of conditions, will be exempt from tax.
• Charitable Contributions – Conforms Wisconsin law to the federal charitable contribution changes for tax year 2020, which include:
  • A new $300 above-the-line charitable deduction for cash contributions to certain qualifying charities by individuals who take the standard deduction.

[Taxfiler22]

Do we know when turbo tax will have the update completed?

[DaveF1006]

There are 30 states who have not conformed yet to the most recent legislation.  So returns for those states cannot be e-filed. Wisconsin is one of these states.

[Cellocorman]

Is there a timeframe where we will be able to file, or are you saying we will not be able to file with TurboTax at all this year?