It looks like the IRS has released Form 8915-E for Coronavirus Distributions from 401k. When will Turbo Tax have that form in place so I can finish my taxes?

[Anonymous]

@Taxesaretheworst2021  same here with NY at 6:59am... so annoying.  I just want to final my taxes!

[Marymusic]

Same issue with NC at 7:45am..

[Mortis73]

Just filed mine. If you already entered your 1099-R(s), edit each one of them individually and answer the COVID-19 questions.

[Irene2805]

Yes -  Form 8915-E is available in both the CD/Download and online versions of TurboTax. 

Please make sure your program is up-to-date.  In TurboTax CD/Download, you will be prompted to download any updates available when you open the program.  You can also update the program while you have it open by following these steps:

1. Click on the Online link in the black bar at the top of the page.
2. Click on Check for Updates.
3. TurboTax will download and install any updates available.  If there aren't any updates, you will receive the message "Your software is up to date."

Once your program is updated, go back through the 1099-R portion of the program and proceed through the screens following the 1099-R entry screen. 

• You will see a series of questions to see if you are exempt from the additional taxes on early withdrawals [Screenshot #1, below]; and 
• You will  be asked if you want to pay all the tax this year of just 1/3, with the rest reported over the next two years. [Screenshot #2]  Check the box if want to pay tax on the entire retirement distribution in 2020.

Screenshot #1

Screenshot #2

[Anonymous]

@Irene2805   any update on this?

I am however getting an error for my NY state return when I try to file. It says “Check This Entry: Pension Deduction Worksheet: Federal Amount We’re still working on updates related to retirement distributions that qualify for disaster or covid relief. You can keep working on your return and we’ll remove this message when it’s ready.

I am unable to edit anything on this form and not able to file my taxes due to this!

[Burny]

The form is now included in the Windows desktop version. Still seems a bit buggy though. What is mainly missing is that when you opt  to spread the taxes over 3 years, it still shows the full distribution as taxable on the 1040 main page (in my case reduced my a small amount due to the fact of non-deductible contributions in prior years.)

Anybody else experiencing this? Turbotax please address this issue.

[DoninGA]

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@Burny wrote:

The form is now included in the Windows desktop version. Still seems a bit buggy though. What is mainly missing is that when you opt  to spread the taxes over 3 years, it still shows the full distribution as taxable on the 1040 main page (in my case reduced my a small amount due to the fact of non-deductible contributions in prior years.)

Anybody else experiencing this? Turbotax please address this issue.

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The question is asked if you want the full amount of the distribution taxed in 2020.  If you DO NOT check that box then only 1/3 of the taxable amount of the distribution will be entered on the Form 1040 on either Line 4b or 5b depending if the distribution was from an IRA or a pension.

[Burny]

I agree, that is how it should work. I have the box unchecked and it still makes the distribution fully taxable for this year. Maybe a bug due to the fact that I have non-deductible IRA contributions. Just a guess.

[traceyc30]

Following

[DoninGA]

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@traceyc30 wrote:

Following

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Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments is available for both the TurboTax online web-based editions and the TurboTax desktop CD/Download editions.

If you are using the desktop editions you have to update your software.  Click on Online.  Click on Check for Updates.

You need to enter or edit your Form 1099-R and answer the questions concerning a Covid-19 distribution.

[Burny]

Update on this. I think I have found the bug. 

As you go through the screens, TT ask if you had non-deductible IRA contributions. If I answer that question with NO, it takes only 1/3 of the distribution as taxable. 

However, if you had non-deductible contributions tracked on Form 8606, TT transfer the full distribution amount less the adjustment for 8606.

Is Turbotax following this forum or does anybody know how to report this officially to TT to fix?

[cldunn87]

The federal portion of the return seems to work fine, and the 8915-E is available. After updating the income portion of the 1099 this works fine.

When attempting to file state taxes there are error messages. After going through EVERY section on state return multiple times, there is no section that directly references whatever the state equivalent of the 8915-e. The error is only present when checking the return in the final state steps. 

It states: 

Check This Entry

Form 1: Penalties on IRA We're still working on updates related to Penalties on IRAs, retirement plans, MSA's distributions (Form 1099-R) that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when it is ready. 

For my Wisconsin return it is highlighting Form 1, line 22: Penalties on IRAs, retirement plans, MSAs, etc as well as Form 1NPR Page 2, line 56. 

[Anonymous]

@cldunn87  yup same thing here with my NYS filing.... I just want to file my taxes!  So far no one has responded to this issue, they have only responded about the 8915-E form....

[macuser_22]

You are best off contacting customer support for state issues.    Most of us that answer questions do not live in NY or MI and do not know about state requirements.  So far I have not seen any reports with CA that I know about.

[Andrushka05]

I agree, I have desktop version on my mac and federal COVID 401K tax issue is resolved. However State is not, and it does not allow me to changed the taxable disbursement amount.

Turbotax states that they are still working on state.

Anyone know when the state will be resolved particularly NY?