We took money from an IRA for a home emergency and assumed it would be an approved withdrawal due to Covid 19?

[macuser_22]

Was it?

Per IRS:

Q3. Am I a qualified individual for purposes of section 2202 of the CARES Act?

A3. You are a qualified individual 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.

Under section 2202 of the CARES Act, the Treasury Department and the IRS may issue guidance that expands the list of factors taken into account to determine whether an individual is a qualified individual as a result of experiencing adverse financial consequences. The Treasury Department and the IRS have received and are reviewing comments from the public requesting that the list of factors be expanded.

[KathrynG3]

It depends. From inside TurboTax, enter 1099r in the search box and select the Jump to link in the search results. Enter or edit the details and continue answering through all the prompts in this section.

Eligibility for the early withdrawal penalty waiver will depend on the eligibility as sited by @macuser_22. If you are getting unexpected results, by following the steps above, the details that were entered into TurboTax can be checked.

When the distribution is reported on the tax return, TurboTax will add Form 8915-E based on how the interview is completed. All states are not yet updated, but should be ready by March 19. 

For more information, see:

Are there exceptions to the early distribution penalty on an IRA?

What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?