Cares act distributions over 3 years

[gmmayes94]

I used TurboTax in 2020 to record my Care Act distribution from my 401K via the 8915E form, and I spread the withdrawal out over 3 years.  All went well.  But when I did my taxes for 2021 I could not get TurboTax to add the next year's amount to the tax return.  I submitted my taxes without the additional income, thinking that I can submit an amended form when I figure this out.  I have been trying to create an amended form with the additional income, but it is not working.  

How do I submit an amended 2021 tax return to include the additional income from my Cares Act distribution from my 401k?

[tagteam]

@dmertz 

[dmertz · Accepted solution]

The Coronavirus-Related Distribution is a type of disaster distribution.  In 2021 TurboTax you should indicate that you received a disaster distribution in 2020.  To do that visit IRA, 401(k), Pension Plan Withdrawals (1099-R), then as you proceed through that section (If presented, be sure to click the Continue button on the page that lists 2021 Forms 1099-R that you have entered) indicate that you received a prior-year disaster distribution, and that you had a 2020 Qualified Disaster Distribution.   TurboTax will present boxes where you'll fill in the necessary details from your 2020 Form 8915-E.

Regarding amending with TurboTax:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

[fanfare]

do you want to use the TurboTax amendment program (contact TurboTax support).?

Or do you want to do it manually?

For 2021 use Form 8915-F to enter the one third amount on the appropriate line.

Then your AGI and income tax goes up. you have to recalculate your tax.

If your recalculation is off, IRS will correct it.

You can get fillable-PDF Form 8915-F and Form 1040-X from the IRS.gov website and prepare it manually.

both the IRS calls "forever forms" ; they don't have a Tax Year in the upper right corner.

@gmmayes94 

[fanfare]

When filing 1040-X, attach 8915-F and nothing else.

That's all you need.

@gmmayes94 

[gmmayes94]

If I do this manually, will I have to do this manually again in 2022?

[fanfare]

"If I do this manually, will I have to do this manually again in 2022?"

No.

HOWEVER,

you must locate in TurboTax the proper section to enter your one third amount of the 2020 distribution.

@gmmayes94 

[fanfare]

"But when I did my taxes for 2021 I could not get TurboTax to add the next year's amount to the tax return. "

That would be a problem if you fail again.

reply back in 2023 if you can't figure it out.,

@gmmayes94 

[fanfare]

to generate 1040-X in Turbotax you can just add "Other income" of $n,nnn where n,nnn is one third of your distribution.

That still leaves you to do the Form 8915-F. see lines 12,15  for a 401k distribution.

Note: this generates incorrect 1040 but you don't send 1040 with 1040-X.

@gmmayes94 

[gmmayes94]

I think I may have found the cause of the problem.  It appears that TurboTax messed up my 401k distribution on my 2020 return.  On the 8915-E form my distribution is showing on line 1 (Distributions from retirement plans (other than IRAs), and not on line 2 (Distributions from traditional, SEP, and SIMPLE IRAs).  I went back through my 2020 return in TurboTax and it all looks correct.  I was thinking that if I fix the 2020 return in TurboTax it will help me amend the 2021 return.  It doesn't appear that this will work.  I may have to just go ahead and manually amend my 2021 return and then do it again in 2022.

[dmertz]

Your 2020 Form 8915-E is correct.  CRDs from a 401(k) are properly reported on line 1, not line 2.

If your 2020 Form 8915-E shows on line 9 only 1/3 of line 8, transferring that tax file into 2021 TurboTax would have resulted in line 12 of your 2021 Form 8915-F showing the same amount as on line 9 of your 2020 Form 8915-E.

[gmmayes94]

I dont know why it would not have imported the 2020 data for the 2021 return, but given where I am now, should I manually submit the amendment for 2021, or do I try and import the 2020 data?  I am leaning towards manually fixing 2021, and perhaps try an import the data for the 2022 return.

[dmertz]

Transferring in is not an option.  After initiating an amendment using 2021 TurboTax, you'll need to go to Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), indicate that you took a disaster distribution, that you received a 2020 disaster distribution and then fill in the information that you obtain from your 2020 Form 8915-E.  You'll then transfer the amended 2021 Tax file into 2022 TurboTax to begin your 2022 tax return.

I suggest that you do not try to amend without using 2021 TurboTax to prepare the amendment.  Amending without using 2021 TurboTax could very easily result in you missing some other required change that is caused by the change in your AGI.  You also wouldn't have an accurate 2021 tax file to transfer into 2022 TurboTax.