In turbo tax 2021, I don't believe the repayment or rollover question on 8915 to be correct. I took a COVID distribution from my 401k in 2020 and then repaid (rolled over) the amount in 2021 to my IRA. From all IRS documents I have read, this is allowed. The repayment simply needs to go an eligible retirement plan, see below:
7. May I repay a coronavirus-related distribution?
A7. In general, yes, you may repay all or part of the amount of a coronavirus-related distribution to an eligible retirement plan, provided that you complete the repayment within three years after the date that the distribution was received. If you repay a coronavirus-related distribution, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer so that you do not owe federal income tax on the distribution.
The issue that I am dealing with is that if I enter that the repayment went to my IRA and not the original 401k, Turbo tax is not recognizing the repayment and thus income deduction. If I indicate the repayment (rollvoer) went back to the 401k, then my taxes are reduced. I think this is an error in the software processing of Turbo tax.
