1099-R

[elaine63]

Trying to find where you go to do the 1099-R for the CARES ACT.  Do not see where you can accept the 3 years to pay and it is not disallowing the 10% tax penalty

[360 Tax Martin]

Once you've entered the 1099-R details, in the same section you would go to:

Less common Scenarios > Enter full amount in qualified coronavirus-related disaster distributions included in gross distribution.

That's it. If you wish to claim all of the income in the current year you would also check off in the same section:

Elect not to average over three years

Otherwise, the 10% penalty should not show up at this point.

[360 Tax Martin]

If clients are getting massive refunds, I also like to advise them to apply payments to 2021 return & that this taxable income will carry forward to 2021 & 2022. Most still want the current year refund though. You can lead a horse to water ..

[Terry53029 · Accepted solution]

In Pro, on the 1099R worksheet (about 1/3 way down) check box 2020 coronavirus-related distribution. That will automatically spread the distribution over 3 years. It will also generate the 8915E, and if you don't want to spread over three years check box A. This is in Pro, but I would think Basic would be same. 

[elaine63]

Thank you so much!! I had started to do it but I got nervous lol!! My software has a disaster worksheet and I had to choose 2020 coronavirus related distribution and then it ask how much you want i prefer you choose all of it and then it applies a 891SE-T.  Again thank you!!