I took 401k early withdrawal due to Covid in 2020 and filed tax and chose 3 years payments. How do I file the 2nd payment in 2021 tax return?

You will report the second taxable portion of your 2020 coronavirus distribution in the Retirement section under Wages and Income of TurboTax.

However, this section is not yet ready as the IRS has not yet issued instructions for form 8915-F and you'll need to revisit this section later.

Please read this TurboTax Help topic on form 8915-F.

Thanks. Do you know when it will be ready?

At this time, we have no information as to when the IRS will release the final form 8915-F.

It is still in draft form as of February 2 on the IRS website.

Thank you for asking this question. I ran up against this same thing, trying to work through my taxes.   Have booked marked this item, hoping to get an update as soon as TurboTax has one.

Yes, please check back for updates.

Once the IRS releases the final instructions and form and TurboTax has updated please use these steps to get the disaster distribution questions in the retirement section:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen

@IWix 

any updates on this it looks as though it's still in a draft state. 

Here's the link to the IRS website. Please look for the latest update there.

IRS Form 8915-F

When will TurboTax update so we can file the tax?

Form 8915-F for reporting your second distribution of your Covid-related distribution from 2020 will be available by 03/31/2022.

Click this link for a listing of Federal Tax Form Availability.

Why does it take so long? Federal tax due date is April 15, but the form will be available on 3/31/2022? That means a lot people can’t file tax now. Correct?

Does TurboTax have an update on this?

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@nguy1656-gmail-c wrote:

Does TurboTax have an update on this?

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Form 8915-F, Qualified Disaster Retirement Plan Distributions and Retirements is scheduled to be available in TurboTax on 03/24/2022 to report the 2nd year of the 2020 distribution.

Has this form been released and what are the instructions for filing it.

Yes, Form 8915-F has been released. Please follow these steps to get to the questions:

1. Click on the "Search" on the top and type “1099-R”  
2. Click on “Jump to 1099-R” 
3. If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
4. Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen.
5. Follow the instructions on the screens.

@mehdi_mirza 

How do we account for the withheld taxes from the 2020 withdrawal? Since this is not a new 1099-R, I can't figure out how to distribute the federal taxes over 3 years that I withheld from that distribution/how to account for it. 

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@kl904 wrote:

How do we account for the withheld taxes from the 2020 withdrawal? Since this is not a new 1099-R, I can't figure out how to distribute the federal taxes over 3 years that I withheld from that distribution/how to account for it. 

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The federal income taxes withheld from the 2020 distribution were entered on the 2020 tax return as a tax payment.

The taxes withheld are NOT spread over 3 years, only the distribution can be spread over 3 years.

The withholding reported on the 2020 1099-R would likely have been refunded or used to pay the Federal balance due on the 2020 Federal 1040 tax return.

You will need access to the figures on your 2020 IRS Form 8915-E.  To access IRS Form 8915-F:

• Go to Federal / Wages & Income / Your income / Retirement Plans and Social Security / IRA, 401(k), Pension Plan Withdrawals (1099-R),
• Click Start / Revisit to the right,
• At the screen Have you ever taken a disaster distribution before 2021?, answer Yes.
• At the screen Did you take a 2020 Qualified Disaster Distribution? select Yes, you had a 2020 Qualified Disaster Distribution.

@kl904

So, I followed the instructions in saying "No" to receiving a 1099-R in 2021 and then filled out my 2020 Qualified Disaster Distribution (Coronavirus related withdrawal) from my 2020 return, but it did not change my 2021 federal refund amount.  This leads me to believe that the software is not working properly.  Why did my federal refund not decrease once I entered taxable income from the 2020 withdrawal?

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@cvx1800 wrote:

So, I followed the instructions in saying "No" to receiving a 1099-R in 2021 and then filled out my 2020 Qualified Disaster Distribution (Coronavirus related withdrawal) from my 2020 return, but it did not change my 2021 federal refund amount.  This leads me to believe that the software is not working properly.  Why did my federal refund not decrease once I entered taxable income from the 2020 withdrawal?

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You have to enter 1/3 of the 2020 distribution in both boxes -

If you had a Covid-19 related distribution in 2020 and selected to spread the distribution over 3 years -

Answer No when asked if you received a Form 1099-R in 2021, if you did not receive the form

Answer Yes when asked if you took a disaster distribution

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

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

2020 Form 8915E Line 9 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 -  Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

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

I followed your instructions for a "Not an IRA" by entering 1/3 the amount of distribution in both boxes for Line 9 and the 2021 Form 1040 Line 4b did not update on the form.

Still, my federal refund remains unaffected by anything entered concerning the 2020 Qualified Disaster Distribution information entered..

Is the Turbotax software working properly??????

I didn't think it was working correctly either. Finally figured out that you need to enter the amounts in two boxes and not just one. Enter your amount in the top AND the bottom box: