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
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
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.