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    How do you input the Covid exception to the early withdrawal of retirement funds? And how do you apply the tax due to the three year period?

    shannonlplm
    Level 1
    I have a 1099-R that qualifies for the CARES Act exception to penalty and allows for tax to be paid over the three year period.  However, I dont see the exception in the input nor an allocation for the tax to spread out over the three years.

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    3 Comments 3
    IRonMaN
    Level 15

    You need a combination of form 5329 (code - other) and form 8915E.  The bad news is, the 8915E isn't going to be ready until 2/25.


    Slava Ukraini!
    nbeck
    Level 3

    On in the input screen for the 1099-R there is a section for form 8915.  You need to enter the distribution amount that will be spread over 3 years in the box for "qualified disaster recovery distributions included in gross distribution"  The 1099-R my client had was coded as an earlier distribution with exception so I did not have to address the penalty amount.  

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    qbteachmt
    Level 15

    https://proconnect.intuit.com/community/form-1099-r/help/how-to-enter-coronavirus-related-retirement...

     

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