When will TurboTax online release an updated version that will allow me to waive my early 401k withdrawal fees due to COVID-19?

You will report this on a Form 8915-E.  The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act.  So this form cannot be included in the TurboTax program.  You will not be able to proceed until the form is available.

 

The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.

 

We estimate it will be sometime in February 2021 before the form is available.  You can watch this link for the form availability.  Currently, the form is not listed here since there is no estimated date.  Once there is, you will find the form listed with the date available.  

 

IRS forms availability table for TurboTax individual (personal) tax products

 

 

Please sign-up here and we will email you once the form is live.

The form actually has been finalized already. How long will it take for Turbotax to get this included?

https://apps.irs.gov/app/picklist/list/formsPublications.html?value=8915-E&criteria=formNumber&submitSearch=Find

If you click on the above, they are no longer draft forms. 

https://www.irs.gov/pub/irs-pdf/f8915e.pdf
https://www.irs.gov/pub/irs-pdf/i8915e.pdf

I see they did release this form yesterday.  The form is available to print and file, but not yet available for use in tax software.  It will take a bit for it to be incorporated into TurboTax, tested for eFiling, and approved for use by the IRS.