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Waiver of penalty for the 401K early distributions

Level 1

the 1099R has an amount distributed with #1 in box 7.  However when inputting info the pro series basic generates penalty due to client under 59 1/2.  According to the Cares Act penalties are waived for taxpayers who are under 59 1/2.  How do I get the penalty off the return

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2 Comments 2
Level 15
Level 15

Were waiting on the Form 8915E , the disaster distribution form to properly report these distributions.  You also have the option to spread the taxability out over 3 years.

The form is scheduled to be ready on 2/18

Level 8

Just wait a little bit Eileen, they need to update both Forms 8915E and the 1099R. If you scroll down the 1099r entry form you will see a part to mark Coranavirus Disrtibution and I believe that should be the waiver for the 10% penalty. You could even see a message that the form is not finished and could benefit the taxpayer. I believe that will wait the penalty and the 8915E will give that and other options too. Thank you. 

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