topic Does WI return now allow for Covid 401k distribution? "We're still working on updates related to Penalties on IRA's, retirement plans... that qualify for Covid relief." in Retirement tax questions

Does WI return now allow for Covid 401k distribution? "We're still working on updates related to Penalties on IRA's, retirement plans... that qualify for Covid relief."

simplygourmetgir — Mon, 01 Mar 2021 21:48:03 GMT

Re: Does WI return now allow for Covid 401k distribution? "We're still working on updates related...

DavidD66 — Tue, 02 Mar 2021 00:36:57 GMT

Wisconsin Act 185 adopted a number of changes to conform Wisconsin’s income tax laws to changes in Federal tax law. Among them:

Retirement Accounts – The CARES Act provided several changes for retirement accounts including suspending required minimum distributions, increasing 401(k) loan limitations, and creating a coronavirus-related distribution.
The coronavirus-related distribution allows for up to $100,000 to be withdrawn from a retirement account exempt from the 10 percent penalty tax. To qualify, the individual or their spouse must have been diagnosed with COVID-19 or experienced adverse financial consequences caused by COVID-19. Any amount of the distribution that is taxable can be recognized over the next three years or the taxpayer can elect to treat the distribution as taxable in 2020.
For Wisconsin income tax purposes, otherwise applicable penalties on distributions from a retirement account qualified under the IRC will be waived for tax year 2020. In addition, for Wisconsin income tax, these distributions, subject to a number of conditions, will be exempt from tax.
Charitable Contributions – Conforms Wisconsin law to the federal charitable contribution changes for tax year 2020, which include:
- A new $300 above-the-line charitable deduction for cash contributions to certain qualifying charities by individuals who take the standard deduction.

Re: Does WI return now allow for Covid 401k distribution? "We're still working on updates related...

Taxfiler22 — Wed, 03 Mar 2021 02:24:07 GMT

Do we know when turbo tax will have the update completed?

Re: Does WI return now allow for Covid 401k distribution? "We're still working on updates related...

DaveF1006 — Wed, 03 Mar 2021 02:44:16 GMT

There are 30 states who have not conformed yet to the most recent legislation. So returns for those states cannot be e-filed. Wisconsin is one of these states.

Re: Does WI return now allow for Covid 401k distribution? "We're still working on updates related...

Cellocorman — Wed, 03 Mar 2021 12:58:27 GMT

Is there a timeframe where we will be able to file, or are you saying we will not be able to file with TurboTax at all this year?