How do you input the Covid exception to the early withdrawal of retirement funds? And how do you apply the tax due to the three year period?

Forum|Forum|5 years ago
February 10, 2021
3 replies
16 views

I have a 1099-R that qualifies for the CARES Act exception to penalty and allows for tax to be paid over the three year period. However, I dont see the exception in the input nor an allocation for the tax to spread out over the three years.

Lacerte Tax

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IRonMaN

Level 15

You need a combination of form 5329 (code - other) and form 8915E. The bad news is, the 8915E isn't going to be ready until 2/25.

Slava Ukraini!

N

nbeck

Level 3

On in the input screen for the 1099-R there is a section for form 8915. You need to enter the distribution amount that will be spread over 3 years in the box for "qualified disaster recovery distributions included in gross distribution" The 1099-R my client had was coded as an earlier distribution with exception so I did not have to address the penalty amount.

qbteachmt

Level 15

https://proconnect.intuit.com/community/form-1099-r/help/how-to-enter-coronavirus-related-retirement-plan-distributions/00/124368

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