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Returning Member
posted Mar 11, 2021 2:11:34 PM

nontaxable Cares Act Roth distribution - what lines of 8915E should it show

my Cares Act nontaxable Roth distribution showing up on line 5 of 8915E not in column 2 of line 3 - is this correct since it is a Roth that is nontaxable. is it still classified as a covid distribution even though declared on line 5.

0 8 815
8 Replies
Expert Alumni
Mar 11, 2021 3:25:11 PM

No. it sounds like you reported this incorrectly in Turbo Tax. If entered correctly:

  1. It should show up in the Smart Worksheet that is in the beginning to 8915-E in Box C under Total Distributions and Distributions on 8915-E
  2. It should also appear in Line 3 in columns A & B.
  3. Line 5 should be blank
  4. You might want to go back and review your entries regarding this 1099-R.  Check your distribution Code in Box 7. Should be a J, which indicates this is an early distribution from a Roth IRA.  If any other distribution code is listed, then you may need to get a corrected 1099-R from your trustee of your retirement account.
  5. Also carefully answer the COVID questions in the follow up questions after you review/edit your 1099-R form

Level 15
Mar 11, 2021 4:13:46 PM

If editing the 1099-R form does not cause the Roth IRA distribution to be treated as a CRD, delete and reenter the 1099-R being careful to answer the questions as indicated by DaveF1006.

Returning Member
Mar 12, 2021 7:25:45 AM

Thank you both but the roth withdrawal was not an early distribution. code given was T. I am 67 and have had the roth for over 5 years. Just want to include as covid since it was - so I can repay over 3 years since I lost my job last year and forced to retire.  did try to delete and reenter the roth but did not change 8915E???

Level 15
Mar 12, 2021 7:44:14 AM

[removed by me]

Level 15
Mar 12, 2021 8:01:04 AM

sorry, I retract.

Your amounts go on Lines 15 - 18 in Part III

Level 15
Mar 12, 2021 8:04:27 AM

Ignore my previous response.  I had assumed that this was the only CRD that you received and that you received this distribution before age 59½.

 

What you are experiencing is a bug in TurboTax.  TurboTax still has many problems with teh way it prepares Part I of Form 8915-E, one of which is that it mishandles any CRD reported with code T or code Q in box 7 of a Form 1099-R by failing to include the distribution in column (b) of line 3 of Form 8915-E (whether or not any other CRD is present on the form).  Apparently the TurboTax developers thought that there was no reason to treat such a nontaxable distribution as a CRD, but the developers overlooked that the recipient might want to take 3 years to repay the distribution, requiring the distribution to be present in column (b) of line 3.

 

If you are using the  CD/download version of TurboTax, as a workaround you can enter the amount directly in column (b) of line 3.

 

If you are using the online version of TurboTax, there is no good workaround.

 

Perhaps @DaveF1006 can follow up on this with TurboTax Product Quality.

Level 15
Mar 12, 2021 8:39:51 AM

So far I've tried three tax programs including TurboTax Online, for a COVID distribution with part paid back.

all three give different taxable amount on Line 4b.

 

I don't think TurboTax is correct in my scenario either.

Returning Member
Mar 14, 2021 10:07:47 AM

Can the tax experts turn over to update department to have this fixed if problem with programs