The 8915-E Form is projected to be e-fileable starting 02/24/2020. Please sign up here to get notified when Form 8915-E is ready and for additional information.
Once the Form 8915-E is live please follow these steps to enter your 1099-R:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R” and you should see the “Your 1099-R Entries” screen
- Click "edit" and continue until "Tell us if any of these uncommon situations apply" screen
- Select "I took out this money because of a qualified disaster (includes COVID-19)" (TurboTax will walk you through questions once this section is ready)
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:
- You, your spouse, or your dependent are diagnosed with COVID-19
- You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19
- You’re unable to work due to child care closure or hour reduction because of Covid-19
- You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.
You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.
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Just an FYI that, I came across what MUST be a bug in TT with a workaround that worked for me.
I had 4 IRA transactions in 2020 (all with 1099-Rs).
2 were non taxable direct rollovers.
1 was a taxable MRD (not due to COVID).
1 was a CARES/COVID qualified "hardship" withdrawal.
I entered them all into TT in THAT specific order.
In accordance with CARES, I opted to split the COVID withdrawal into thirds.
I had also repaid part of the loan which caused the taxable amount for THIS year to be zero.
Bottom line is that I expected was to pay tax on the MRD only.
TT somehow calculated a hugely negative number and entered it into line 4b of the 1040 form.
I deleted the 1099-R transaction and re-entered them only to get the same result in line 4b.
It calculated correctly ONLY when I entered the taxable MRD transaction last.
Obviously, it should not matter what order the 1099-Rs are entered.
I don't know how to report a bug to TT and it may already be known by them (and in the process of being fixed) but if anyone else is experiencing weird or unexpected numbers in 4B, this may help you.