I had a disaster relief withdrawal from my 401k which makes it qualified for no penalty fee. But turbo tax doesn't seem to want to let me efile due to this; It keeps sending me back to review and make sure I filed correctly for a Qualified disaster relief,,,which it was. Now I'm stuck in a loop or I can file by mail ONLY. Is this my only option? Or does turbotax plan on updating their system to accept 2024 qualified disaster withdrawals from retirement plans?
You really do want to efile. Yes the program will be able to handle your taxes.
I went through the program today and see this area is being updated. Since all tax forms and amended returns related to disaster areas are having to be corrected back to 2019, it makes sense. Give the IRS some time and then TurboTax to get this all straightened out. The new retroactive law was just passed in December so all the agencies are struggling to add one more thing to their list.
I have a similar problem. The Disaster Relief Act of 2024 lets those who don't itemize increase the standard deduction by the amount of their net qualified disaster loss (as described in Form 1040 line 12 instruction, exception 4) - but the program doesn't have any route to do this.