It seems that the software has undergone some updating as issues have been reported on this new form.
If you are using a desktop version, please update your software. If you are using TurboTax Online, it should update automatically, however, you may need to delete your information and begin again.
Form 8915-E is available. It cannot be accessed directly by searching for it and jumping to the section. When you complete the retirement section (1099-R) the interview will ask whether you took an early withdrawal due to COVID. First it will ask if you were diagnosed with it, and if you answer no, it will then ask if your business suffered as a result of it. If yes then it will tell you that you qualify. When you view your tax return before filing, you can see the form completed. The software will also ask you if you want to pay the tax due over three years or not.
Here is more information:
What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?
The CARES Act provides tax relief for up to $100,000 of COVID-19 related distributions from eligible retirement plans. So, if you, your spouse, your dependent, or a member of your household was impacted by the coronavirus and you withdrew from your retirement accounts in 2020 before the age of 59 ½, you may not have to pay the 10% early withdrawal penalty (or the 25% additional tax for SIMPLE IRAs).
When you enter your Form 1099-R, we’ll ask you a few questions to determine your eligibility for the exemption, and complete and include Form 8915-E in your return if you qualify.
To qualify for Form 8915-E and to be exempt from the early withdrawal penalty due to COVID-19, a few rules have to be met.
1. You have to be a qualified individual. To qualify, one of these must be true:
- You, your spouse, or your dependent were diagnosed with COVID-19
- You experienced adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19
- You experienced adverse financial consequences as a result of being unable to work due to lack of child care due to COVID-19, or
- You experienced adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to COVID-19
2. 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
3. The distribution had to have been made in 2020 before December 31, 2020.
There is also a $100,000 distribution limit to the exemption. Any distributions over that amount, may be subject to the additional tax.
