I took a qualified disaster (COVID) distribution in 2020 and selected to spread the tax liability in thirds.
- In 2021 (filing for 2020) I added 1/3 of the distribution to my reported income using form 8915-E.
- In 2022 (filing for 2021) I added 1/3 of the distribution to my reported income using form 8915-F.
- In 2023 (filing for 2022) I added 1/3 of the distribution to my reported income using form 8915-F. This should have been the third and final year where I had to report the 2020 distribution.
When filing today (2024 for 2023 taxes), TT was carrying form 8915 over and automatically adding this to my income for the last year. This is incorrect as I no longer have to count it because it is now year 4. TT Live support (CPA, very helpful) instructed me to delete form 8915 from my tax file saying TT was simply carrying it over in a way to be helpful in case I needed it as I did in prior years. However, when going through the filing and asked if I took a qualified disaster distribution between 2018-2020 the answer is 'Yes' but I'm curious if I should select 'No' here because it says only click yes if I have it to report.. which I don't.
Does anyone know what I should do? I don't want to select 'No' if this will flag me with the IRS, but I've already paid 1/3 over the last three years and should be clear of it so I really don't have anything to report. It's just confusing when the wording below could be Yes or No.
Excerpt from TT form directly.
Did you take any disaster distributions in prior years or repay any prior year disaster distribution in 2023?
| Victims of certain qualified disasters were eligible for special tax treatment of IRA and pension distributions. Qualified distributions could be included in income in equal amounts over three years and are not subject to early withdrawal penalties. Select Yes if you need to report 1/3 of the amount of your distribution from a prior year. | | |
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Any insight would be greatly appreciated!
