CARE ACT TSP WITHDRAWAL

Forum|Forum|4 years ago
April 12, 2022
3 replies
35 views

I have a withdrawal of $100k from my TSP under the CARES act on October 6 2020. Last year when I filed with TT, I inputted it in the form and it said 100K income, 66k nontax, and 33k taxable income. I spread it out for 3 years. This year how do I input that in TT so it won't stated that I have 100k income for 2021 again?

Thanks

Tam Le

Best answer by DoninGA

@tamanltt wrote:

Form 1040 Line 5b $33,333, line 5a $100000

Then for the 2021 2nd year of the 1/3 distribution you need to enter $33,333.

You must go to the Retirement Income section of the program for a Form 1099-R to be able to enter your 2nd year of the 2020 distribution -

Click on Federal

Click on Wages & Income

Scroll down to Retirement Plans and Social Security

On IRA, 401(k), Pension Plan Withdrawals (1099-R), click on the Start or Revisit button

On the screen Did you get a 1099-R in 2021? Click on NO, if you did not receive a 2021 Form 1099-R in 2022

Answer Yes when asked Have you ever taken a disaster distribution before 2021?

Answer Yes when asked if you took a Qualified 2020 Disaster Distribution

Check the box that this was a Coronavirus-related distribution reported in 2020

In the box 2020 Form 8915-E, line 4, column b - Leave blank or enter a 0

This is not required on a Form 8915-F for a Coronavirus-related distribution

If the 2020 distribution was from an account that was Not an IRA

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

2020 Form 8915E, line 9, if you checked the box on that line, enter 0

2020 Form 8915E Line 9

If the 2020 distribution was from an IRA account

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

2020 Form 8915E, line 17, if you checked the box on that line, enter 0

2020 Form 8915E Line 17

Do not enter anything in the other boxes, leave them blank (empty) or enter a 0

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

After completing the Wages & Income section you will land on a screen Did you take a disaster distribution at any time between 2018 and 2020?

Answer NO since you have already completed the entering the 1/3 of the 2020 distribution.

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

Using the desktop editions click on Forms. Open the Form 1040

You should not receive the "Needs Review" in the Federal Review section if -

You Leave blank or enter a 0 in the box for 2020 Form 8915-E, line 4, column b

DoninGA

Level 15

Look at your 2020 tax return. Was the amount entered on Form 1040 Line 5b $33,333 or $11,111?

That would be the 1/3 of the total taxable distribution in 2020. You enter the 2nd 1/3 of the 2020 distribution on the 2021 tax return.

tamanlttAuthor

Level 2

Form 1040 Line 5b $33,333, line 5a $100000

DoninGA

Answer