Enter qualified retirement distribution exceptions for COVID-19
Use these steps to enter a distribution from a retirement plan that qualifies for an exception for COVID-19-related distributions.
- Go to theRetirementfolder.
- Select the1099Rscreen.
- Enter the distribution information as it's reported on Form 1099-R.
- Select the1099R-2screen.
- Go to theQualified Disaster (or COVID-19) Distribution and Repaymentssection.
- In theYear of qualified disasterfield, enter2020.
- In theDisaster Namefield, selectUS: Coronavirus-related (1/1 - 12/31).
- In theQualified distribution amountfield, enter the amount of gross distribution on Form 1099-R, Box 1 that qualifies.
- By default, the taxable amount of the distribution will be spread over 3 years. This means that only 30% of the qualified distribution amount will appear as taxable on the return. If you want the full distribution to be taxable this year, mark theElect out of 3 year income averagingfield.
note
The rest of the fields in the
Qualified Disaster (or COVID-19) Distribution and Repayments
section are optional, depending on how you want the distribution reported.
