COVID-19 distribution; how to know if 3 years of taxes are being removed correctly.

[HiD_G]

I have looked at the directions for taking the taxes out of my return. However, it is automatically filling in with Form 8915-F instead of 8915-E. I don't know how to change this or, how to find out if this is correct. In "Other Tax Situations" it shows that there's no extra tax to be paid since there was no withdrawals before retirement age. That statement is incorrect since we did take advantage of the ability to withdraw from the 401k in 2020 without penalty. I just want to be assured that I have, and am, doing this correctly.

Upon further inspection (and looking at questions that were answered that I didn't see until now), although it lists 8915-F on the Step-by-Step instructions, when I go to look for the 8915 in forms, it lists 8915-E so, it appears it is correct in the forms area. However, I realize that I used form 8915-F on my 2021 taxes, instead of 8915-E. Does this need to be corrected?

Thank you,

Heidi

[JosephS1 · Accepted solution]

No, from what you are stating there is no correction needed.  Form 8915-E was the initial form to report covid-19 disaster distributions in 2020.  The 8915-F superseded the 8915-E in 2021. 

If you took a Covid-19 disaster distribution in 2020, one-third (1/3) of the amount of the distribution, not to exceed $100,000 per person, could be spread over 3 years.

If all were filed correctly, you would have had an 8915-E with your 2020 return and an 8915-F with your 2021, and 2022 returns.  Each showing one-third (1/3) of the distribution being included as retirement income in each year.  There would have been no penalties assessed also.

@HiD_G 

[HiD_G]

Thank you so much for your reply. I truly appreciate it!

Sincerely,

Heidi