What should code be in box 7 of my 1099-R if it was Covid-19 related distribution?

[cordiformis]

It appears my 1099-R I am being assessed the 10% early withdrawal penalty.

[DoninGA]

You enter the code in box 7 just as it is shown on the Form 1099-R you received from the plan administrator.

The IRS has a new Form 8915-E for COVID-19 related retirement account withdrawals.  This form has not been finalized by the IRS for filing with a 2020 federal tax return.  The IRS has not announced when this form will be available.  Once available it will be included in the TurboTax software.

We estimate the form may be available sometime in February.

[Opus 17]

Delete your 1099R form and re-enter it after the program is updated so that you can make the proper selections at that time.

[cordiformis]

Thanks!!!  Very helpful!  I’ll wait

[gb1]

Fidelity issued 1099-R with Distribution Code of 1 (box 7) for Covid distribution. Shouldn't that be code 2?

[DanaB27]

No, since you only qualify if:

• You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;

• Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;

• You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19;

• You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or

• You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19. ( IRS)

Once the Form 8915-E is finalized by the IRS and TurboTax is updated you will be able to indicate in TurboTax the exception in the 1099-R entry section.

@gb1

[rdude1]

I would hope this form has been up-dated by now, please let me know.  Thanks

[macuser_22]

Yes, it was in all versions as of Feb 26.