1099 R Early Distribution

[Florida_EA]

Client is an individual taxpayer who took out 3,000 from his IRA under the COVID 19 relief. Client received the 1099R stating that it is a taxable distribution. Client wants to pay tax but not the 10% penalty in the 1040. How do you tell the IRS that this is a COVID 19 distribution and hence not subject to the 10% penalty

[Rapid Robert]

One place to report it is Form 8915-E. But I haven't checked the Form 5329 instructions to see how it interacts there.

[Lion]

Form 5329 exceptions?

[New York Enrolled Agent]

Form 5329 exceptions?

Code 12 on Form 5329 covers COVID-19 distributions. Follow RR’s advice - use 8915E to elect to report it all in 2020.

[Gene V]

Client is an individual taxpayer who took out 3,000 from his IRA under the COVID 19 relief. Client received the 1099R stating that it is a taxable distribution. Client wants to pay tax but not the 10% penalty in the 1040. How do you tell the IRS that this is a COVID 19 distribution and hence not subject to the 10% penalty

When you report the distribution on Form 8915-E, you are not require to file Form 5329 for the additional tax. This is per the Draft Instruction for From 8915-E
Your tax software should handle this automatically

[Florida_EA]

Has Form 8915E been updated in all tax software. I am not able to locate it in cch pro fx.

[Gene V]

Has Form 8915E been updated in all tax software. I am not able to locate it in cch pro fx.

I use Lacerte, the form in the software, just not updated yet--say DO NOT FILE.

[AZUKHiker]

It is still a Draft form on the IRS web site so cannot be filed yet.