TinaW65
Returning Member

My 401K Plan Admin states I do not have to pay taxes on my distribution - COVID - but Turbo Tax is still showing I am to be taxed via form 8915-E

I am completing form 8915-E yet it still says I have to be taxed.  I have 3 years to repay my loan so why am I being taxed?   My 1099 R show the distribution and 8915-E wants me to be taxed on 1/3 of the amount.  I am not to be taxed on any of it.  Zero tax.

Get your taxes done using TurboTax

 complying with the plan's requirements regarding a loan would make it non-taxable.  as a matter of fact, you should only receive a 1099-R for a 401(k) loan if you violate the plan's or tax code provisions such as borrowing too much or failure to timely repay the loan.   if you quit employment it is a deemed distribution and it becomes taxable at your termination. contact the administrator to get this straightened out. 

TinaW65
Returning Member

Get your taxes done using TurboTax

Hi Mike, thank you, but my situation is different.  The situation is regarding a 401K loan from a former employer-plan.  The employer-plan has allowed for former employees to take COVID loans out during 2020 on a 3-year repayment schedule.  No taxes and full repayment allowed.  I did get a 1099-R and instructions to complete form 8915-E to avoid taxes, but I don't know how to fill out the form to prevent taxation via TurboTax.