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Why isn't Turbo tax allowing me to divide my covid withdrawal over 3 years?

I want to split my 15,000 withdrawl over 3 years for the cares act
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1 Reply
DanaB27
Expert Alumni

Why isn't Turbo tax allowing me to divide my covid withdrawal over 3 years?

Please follow these steps to enter your 1099-R and select to split it over 3 years:

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
  4. Continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
  6. Answer all follow-up questions carefully
  7. You will get the screen "Do you want to pay all the tax this year?". If you do not click the box at the bottom the amount will be split over three years.

 

If this doesn't work what is your code in box 7 of your 1099-R?

 

 

If your code is 1B it might not trigger the COVID distribution question. Please see users dmertz workaround below how to enter it in TurboTax Online. 

 

Please follow these steps from dmertz to enter your 1099-R:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
  4. Continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
  6. Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
  7.  On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
  8. When you continue the COVID questions are still accessible

 

 

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