How do you "apply" for not paying a 10% penalty on otherwise early withdrawals of retirement distributions in 2020 when the box 7 code on a 1099-R has a 1 marked & the withdrawal was Covid related pursuant to the CARES Act of March-2020?
LOL Susan... no work to do? Or just already overwhelmed so turning to humor to cope?
If a post answers your question, click on *Accept as solution* for future searches
You can go to Form 5329, look for Line L under Distributions not subject to additional tax, enter the amount of the distribution and you will see that PS will place code 12 on Line 2. dotted lines, that code includes the waiver of the Coranavirus Related Distributions this year. There will be another way soon they update the program in Form 1099R. But for now, you can waive there.