Proseries just released the updated Form 1099-R worksheet for the new Covid-related distribution rules and something's not right. The rule is that if a taxpayer qualifies, the distribution (up to $100K) will not be subject to the 10% early withdrawal penalty and can he can choose to spread the distribution over 3 years or just take the full hit in 2020. Well....

I see the boxes to check on the 1099-R worksheet to indicate whether the distribution is a qualified Covid distribution. Got that - makes sense. But there are no checkboxes anywhere on the 1099-R worksheet to indicate that I want to pay tax on the full distribution in 2020. When I check the box to indicate it is a qualified Covid distribution, the program removes the entire distribution from income! Everyone is going to have the same problem. I want to report the full distribution for this client because their income is super low in 2020. So I don't want to spread it over 3 years.

Anyone know what box needs to be checked to have the program report the full distribution in income in 2020? I looked everywhere and it's not obvious to me. Should be right there next to the other checkboxes on the 1099-R worksheet.

And where's the checkbox to indicate that you might want it spread over 3 years because I have other clients with that situation???