You'll need to sign in or create an account to connect with an expert.
Form 8915 -E is not yet finalized by the IRS. When it is, you will be able to see the effects on your return.
Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.
You qualify if:
The distribution would be taxed over 2020, 2021, and 2022. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes.
I am 74 years old and withdrew a number of large amounts from my IRA during the 2020 calendar year as I was not able to find employment during that time . I used to work about 39 hrs a week and did not work at all in 2020 except for about 5 hrs. earning $60. Is there a way to spread the increased tax burden ( I paid already 25000 in fed income tax when I made the actual withdrawal) I still have a $5000+ tax liability and was wondering if there are any means of spreading that tax liabilty over a number of years.
I have always filed a joint return with my spouse and was wondering if it would be more advantageous for me to file married filing jointly.
@Mitchsorensen wrote:
I am 74 years old and withdrew a number of large amounts from my IRA during the 2020 calendar year as I was not able to find employment during that time . I used to work about 39 hrs a week and did not work at all in 2020 except for about 5 hrs. earning $60. Is there a way to spread the increased tax burden ( I paid already 25000 in fed income tax when I made the actual withdrawal) I still have a $5000+ tax liability and was wondering if there are any means of spreading that tax liabilty over a number of years.
I have always filed a joint return with my spouse and was wondering if it would be more advantageous for me to file married filing jointly.
Yes. That is what the new 8915-E form is for.
CARES Act retirement plan COVID-19 related distributions can be paid back over 3 years or the tax spread over 3 years.
That is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS. There is no telling how long it will take the IRS to make the electronic form available. Typical it takes the IRS 2-4 weeks to release the electronic form specifications after the paper version is released. e-file providers must program from the electronic specifications.
The draft paper form is here:
https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf
Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
RussellPeak2030
New Member
atomicdog74
New Member
ahk1
Level 3
LindaCi
New Member
bfgraue
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.