how to get penalty abated for covid?

[WITAXLADY]

I cannot find on the worksheet anymore where covid is written?? was it changed for the 8915?

I have read and read  - I swear it was there on the first ones I did on he 5329 - stating line 12 - covid as an exception. 

Even online it states Code L  and now it is not!

So when I use the 8915 - it taxes the income but no penalty

But if I put the info in the 1099-R - it also taxes it!!

no penalty but records it 2x - double income -

Do I not put it into the 1099-R?

 

And what about the 5329, code 12?

confused!!

D

[Lion EA]

Form 8915-E

[WITAXLADY]

yes - but then you do not use the 1099-R? as it duplicates? I see on the 5329 - jump to from code - it even states do not put the $$ amount in on line 1 - read instructions - but do you not have to enter the 1099-R????

[WITAXLADY]

and if the 1099-R is not put in  - the 8915 cannot pull the $$'s  to line 1??

[Janitor Bob]

has anybody figured out how to enter this in ATX?  I am having the same issue

[Janitor Bob]

11 minutes ago, Janitor Bob said:

has anybody figured out how to enter this in ATX?  I am having the same issue

disregard...I found it at the bottom of the 1099-R Input screen

[Pacun]

For others who have not figured it out.

 

Correct, enter the 1099-R and when finish, scroll down and check "check box ONLY for Cornoavirus (CARES Act)...." that will trigger form 8915-E. 

On form 8915-E, enter the date of the earliest 2020 distribution to the left of the amount from 1099-R.

If it is not from IRA, you click the box on page 1, and pay all taxes now. 

If you don't click the box, then 1/3 will be taxable.

If client has returned money to the plan before filing (including extension), you enter that amount on line 10 FOR OTHER THAN IRA.

IRAS have section III with the same choices but as long as you enter the 1099-R correctly the amount will flow to the correct section. 

Remember that you have to attach form 8915-E after signed for efiling. 

 

[Blondie]

So besides the waived early withdrawal penalty, it looks like ATX is waiving tax altogether on that first $100,000! And it won't let me override. Anyone else experiencing this? My client took out $125K and ATX is only taxing $25K (line 5b).

[Pacun]

In your case, $25K will be taxed and penalized. $100K will be divided in three years, so if no money was returned, 1/3 of $100K will be added to the $25K to be taxed but no penalty.