Coronavirus Related Waiver of 10% Early Withdrawal Penalty Form 8915-E

[Tax Slayer]

Checked the box on Form 1099-R that the distribution was "2020 Coronavirus-related Distribution," not subject to the 10% early withdrawal penalty. Form 8915-E states "For coronavirus, check this box," but it is automatically calculated. How do we get that box to populate and will it remove the penalty? Or are we supposed to use Form 5329, Line L (which I understood was NOT the IRS preferred method to waive the 10% penalty)?

[Just-Lisa-Now-]

Seemed to do it automatically for me, you may need to access the 8915E.

You also checked the box that the entire amount was eligible?

[Tax Slayer]

Thanks Lisa.  Got it!

[taxu2]

Do you know how to take the option of including the entire distribution in your income for the year of the distribution instead of over 3 years. ProSeries is automatically distributing over 3 years. 

[qbteachmt]

If the 1099-R is "regular distribution" then you use 5329.

For the tax treatment, you use Form 8915-E (T or S).

[bevantaxservices]

If you check the box "Entire distribution is qualified", it removes the entire distribution from taxation.  Don't think this is the way to go.  I checked the "2020 Coronovirus-related Distribution" box on the distribution W-2 and then used Form 5329.  The W-2 info auto populates to the form but, you still have to type in the amount to exclude in  the "Distributions Not Subject to Additional Tax Smart Worksheet", line L. This works and takes out the 10% tax.  I have not tried this with Form 8915E.

[Just-Lisa-Now-]

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@taxu2 wrote:

Do you know how to take the option of including the entire distribution in your income for the year of the distribution instead of over 3 years. ProSeries is automatically distributing over 3 years. 

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Form 8915E, right below Line 5 is the option to pay tax on the whole thing, no 3 year spread.

[qbteachmt]

"on the distribution W-2 and then used Form 5329. The W-2 info"

Just to clarify: it is a 1099-R, correct?

[bevantaxservices]

Sorry, the distribution is on a 1099-R, not a W-2.