You would enter the information in the 1099-R Retirement Section.
Follow these steps to report any further tax to be paid:
- Login to TurboTax
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?"
- Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen.
You will be guided through the screens.
Form 8915-F is used to report a disaster-related retirement distribution, and any repayments of those funds. It also allows you to spread the taxable portion of the distribution over three years, if needed and report prior year distribution amounts which are to be taxed in 2021.
We'll complete and include Form 8915-F with your return if you qualify. Just enter your Form 1099-R and answer a few questions to determine your eligibility.
Note: Form 8915-F replaces Form 8915-E and will become available later in the tax season.
To qualify for Form 8915-F and to be exempt from the early withdrawal penalty a few rules must be met:
1. The withdrawal had to come from an eligible retirement plan, which could be any of the following:
- A qualified pension, profit-sharing, or stock bonus plan (including a 401(k))
- A qualified annuity plan
- A tax-sheltered annuity contract
- A governmental section 457 deferred compensation plan
- A traditional, SEP, SIMPLE, or Roth IRA
2. The distribution must be to an eligible individual. That is a person who was affected while living in a federally declared disaster area. This doesn't include any area which was declared to be a federal disaster area only because of COVID-19.
There is also a $100,000 distribution limit to the exemption. Any distributions over that amount, may be subject to the additional tax.
