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EAM918
New Member

Calculations for Corona 2020 early withdraw from retirement in year 3

The software seems to have an issue with the 3rd year calculations for the 2020 CARES act Corona early withdraw.   It is charging a 10% penalty for early withdraw which was waived and inflating my taxable amount.  

 

The 8915 worksheet and line 5B on the 1040 do not match.  Line 5B is adding the amount from the worksheet plus the value on the 1099R.  

 

Is this issue being fixed ? will it be corrected by 4/18 ? 

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2 Replies
CatinaT1
Expert Alumni

Calculations for Corona 2020 early withdraw from retirement in year 3

Here is a workaround provided by expert DanaB27 that is working-  

  

Be sure to follow the instructions carefully. Try both options if necessary. 

  

Please try these steps to fix the issue: 

  

  1. Login to your TurboTax Account  
  2. Click on the "Search" on the top and type “1099-R”   
  3. Click on “Jump to 1099-R”  
  4. If you do not have any 2022 1099-R, answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R, then enter all 1099-R and after entering your last 1099-R, click "Continue" on the “Review your 1099-R info ” screen) 
  5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen 
  6. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?" 
  7. Uncheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and click continue 
  8. On the "Which disaster affected you in 2020?" screen, I selected the blank entry and clicked "back 
  9. Then recheck the box next to "If this was a Coronavirus-related distribution reported in 2020, check here" and continue. 

  

Another option is to delete "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and then go back to the retirement section and reenter the information: 

 

  1. Open or continue your return in TurboTax. 
  2. Select "Tax Tools" and then "Tools" in the left menu. 
  3. In the pop-up window Tool Center, select "Delete a form". 
  4. Select "Delete" next to "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and follow the instructions. 
  5. Click on the "Search" on the top and type “1099-R”   
  6. Click on “Jump to 1099-R”  
  7. If you do not have any 2022 1099-R, answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R, then enter all 1099-R, and after entering your last 1099-R, click "Continue" on the “Review your 1099-R info ” screen) 
  8. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen 
  9. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?" 
  10. Check the box next to "If this was a Coronavirus-related distribution reported in 2020, check here" and enter your information. 
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EAM918
New Member

Calculations for Corona 2020 early withdraw from retirement in year 3

Thanks but I have tried both of these options - I am still being hit with the penalty and the calculations are wrong giving me an inlfated amount on my 1040.

 

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