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Couple took an early distribution on their IRA for 2020. I have been told there should be no penalty. The distribution code is 1. How do you get the penalty waived if affected by Covid-19
dd4vols
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on the 1099-R, scroll down to the QUALIFIED DISASTER DISTRIBUTION SMART WORKSHEET, and click on the 2020 coronavirus box and the one below it, entire amount. Then go to the 5329-T, scroll down to the Distributions Not Subject to Additional Tax smart worksheet, and on line 11, enter the amount. Before leaving that page, make sure that Line 2 has code 12 in it, and the amount. Then go to the 8915-E, and at the bottom of Part 1, make sure the 3-year question is marked the way you want.
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"Couple took an early distribution on their IRA for 2020."
There is only Account Owner. Not "couple." The one person is who you are working on; or two separate accounts, one for each Owner. No one jointly owns IRA accounts.
Here are the articles:
https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853
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