2020 TurboTax Software, CARES Act and 401K Withdrawal Tax Burden

[Vickmorn]

Will the 2020 TurboTax Software also have the option to spread the income taxes for an eligible 401K withdrawal over 3 years as allowed by the CARES Act guidelines? 

[DoninGA]

Yes.  The TurboTax software will include all the instructions and forms related to the CARES act for a retirement plan withdrawal after the IRS finalizes and approves all the necessary forms and instructions.

[Opus 17]

Yes.  Turbotax will have every form and instruction that is allowed and required by the IRS.  However, that section of the program isn't ready yet because the IRS isn't ready either. 

[tax novice]

I converted an IRA to Roth and now i dont have the funds to pay the tax bill in April, will I be able to claim hardship withdrawal and spread the tax bill over the next three years?

thanks

[the-blessing]

When will that section of the program be ready?

[DoninGA]

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@the-blessing wrote:

When will that section of the program be ready?

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The IRS has not finalized the Form 8915-E for CARES act withdrawals from retirement plans.  The IRS has not communicated when the form will be available for including in the 2020 federal tax return.  Once the form and instructions have been finalized it will be included in the TurboTax program.

Estimates are the Form 8915-E will be available sometime in February.

[Deb Kelly]

Thank you everybody !

[Erich1981]

I tried last night and didn’t see the option to add money for cares act either. Will we receive another form in the mail other than the 1099-R?

[PattiF]

No, you will not receive another form in the mail other than the 1099-R.

The IRS will be releasing Form 8915-E to use with the 1099-R. Here is more information:

CARES Act and 1099-R Withdrawal.

The software has not been updated yet because the form has not been finalized by the IRS. Once the software has been updated, you will be prompted through the form with instructions on how to enter the information.

The IRS has not provided a release date for the form at this time. Use this link IRS Form Availability to watch for when the 8915-E form will be available in the software once the IRS completes it.

[disgustipated]

Any ETA on updates for CARES Act and 401K Withdrawal Tax Burden.

[CatinaT1]

You will report this on a Form 8915-E.  The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act.  So this form cannot be included in the TurboTax program.  You will not be able to proceed until the form is available.

The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.

We estimate it will be sometime in February 2021 before the form is available.  You can watch this link for the form availability.  Currently, the form is not listed here since there is no estimated date.  Once there is, you will find the form listed with the date available.  

IRS forms availability table for TurboTax individual (personal) tax products

Additionally, the IRS will not start processing returns until February 12, so waiting for this form is not slowing down the processing of your return.

[nonotaxman1971]

I asked on line agent and was told the Form 8915-E SHOULD be on line Feb. 18th. 

[u096469]

can you proactively email  your subscribers  when the form 8915-E is released and I assume the software will automatically update?

[JamesG1]

At this point and time, the Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments has not been finalized by the IRS.

This TurboTax Help has an email sign-up to notify you when the form is available.

[DennisG]

Will the 8915-E address the TT prompt for separate 1099-R's to cover a partial (2020) RMD with subsequent rollover back into the IRA as per CARES act, QCD contributions, and partial RothIRA conversion?  Presently am prompted by TT to prepare several 1099-R's within TT(after entering all of the above manually from the 1099-R sent me by the brokerage)--when only one received from the brokerage(who states they will not be issuing any corrected nor separate 1099-R's to address this).

Thanks very much.