Early distributions of retirement in 2020 due to Corona virus

Forum|Forum|5 years ago
January 26, 2021
14 replies
41 views

How is the 10% penalty being excluded on the tax return for those who made early withdrawals from their retirement plans in 2020 due to the Corona virus?

ProSeries Professional

This topic has been closed for replies.

Best answer by itonewbie

A number of forms/schedules have yet to be finalized by the IRS/states. Once that's done, each software developer still needs to finalize its versions of those forms for IRS/state approval. Until then, returns you prepare will be incomplete, missing various elements.

Hang tight for now. You can bank on it that something this major will not be missed by Intuit.

BobKamman

Level 15

Form 8915-E

A

athaureaux6

Level 7

That form does not seem to be updated. I do not see anywhere how to waive the 10% penalty. I just tried with one example and maybe I need to try deeper. If somebody knows, please share. It will be appreciated. Thank you.

itonewbieAnswer

Level 15

A number of forms/schedules have yet to be finalized by the IRS/states. Once that's done, each software developer still needs to finalize its versions of those forms for IRS/state approval. Until then, returns you prepare will be incomplete, missing various elements.

Hang tight for now. You can bank on it that something this major will not be missed by Intuit.

---------------------------------------------------------------------------------Still an AllStar

C

chasetax

Level 6

go to form 1099-r input, about 1/3 page down is a qualified disaster distribution worksheet, there is an entry box for corona virus distribution under letter 'A'. hope this helps!

A

athaureaux6

Level 7

I saw that yesterday but it does not waive the 10% penalty. I tried with an example unless it is not updated yet but as of now, it does not waive the 10 % penalty. But thanks anyway, I thought it is going to be there but I am not sure.

A

athaureaux6

Level 7

I also tried the 5329 which is where regularly there are choices to exclude the penalty but I did not see anything related to this special waiver, maybe they are updating it. We will see. And I also tried the 8915E. They will fix, this is a major issue I believe.

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