penalty waiver for early withdraw

[artisgam]

How to submit on program

[IRonMaN]

Hurry up and wait for the IRS and Intuit to get the form finished up.

[Terry53029]

You fill out form 5329 with exception code 12 which includes • Coronavirus-related distributions. The form is ready. I think @IRonMaN is talking about the form to carry the income over three years. ( see you give good mind reading classes). 😁

[athaureaux6]

Just wait, they are supposed to have ready by Feb. 18th. Scroll down the 1099R and will see the Coranavirus Related Distribution, put a check and that should waive the 10 % penalty once it is updated and also in 8915E. No rush. 

[Terry53029]

If you don't want to carry over the income, you just fill out the 5329, and no need to wait for the 8915. I have a client who took out $10000 and just wants to pay the tax this year.

[IRonMaN]

To be honest, I hadn’t even looked at an 8915E yet.  But everyone around here has been voicing their frustrations about the form not being ready and it was holding up a bazillion returns.  I did look and the most recent draft form of the 5329 does show COVID under exception 12.

[athaureaux6]

I think I am getting blind. Where is that Exception 12 in form 5329. Appreciate it. Thanks

[IRonMaN]

https://www.irs.gov/pub/irs-dft/i5329--dft.pdf#page=5

[athaureaux6]

Ok I got it, if you enter the amount of the distribution on Line L, it will transfer code 12 to waive the penalty. Thank you.