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

[SamS1]

You are dealing with a number of items.  The only way you will be able to segregate out for each item is to do 3 separate 1099R entries in TurboTax.  One for the QCD amount, one for the Cares Act RMD rollover, and one for the Roth IRA conversion.  Note the 3 1099Rs should total the box amounts for the 1 1099R received from the broker.

1. You need to be at over 70 1/2 to take the Qualified Charitable Distribution deduction for your withdrawal.  If you are at least 70 1/2,   TurboTax will ask whether a portion of your withdrawal was QCD under the Uncommon Situations screen directly after you entered the 1099R information in TurboTax Online.

      2.  RMDs were waived for 2020. The CARES Act provisions apply to most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined         contribution plans. The RMD suspension does not apply to qualified defined benefit plans.

If you took a RMD but returned it in time then follow these steps when entering your 1099-R:

Please follow these steps to enter your 1099-R and RMD rollover:

• Login to your TurboTax Account 

• Click on the Search box on the top and type “1099-R” 

• Click on “Jump to 1099-R”

• Continue until "How much was a RMD?" and select "none"

• You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and re-enter the 1099-R form

• "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

• "Continue answering the questions

3. Enter the Roth IRA conversion into TurboTax.  Follow the screens the indicate you rolled the amounts into another retirement account.

[mndstanhope]

Is this software available now? (Cares Act & 401K Withdrawal Tax Burden) to be divided into 3 tax years?

[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.

Please sign-up here and we will email you once the form is live.

[frfaris]

"The 8915-E Form is projected to be e-fileable starting 02/24/2021"

This is from the TurboTax Help community support questions updated 4 days ago.

[the-blessing]

Can I file without it and provide this form in next years return?

[Deb Kelly]

Hello friends. some one .. in this nice  community said  TurboTax would be updated with this form on Feb 24th  Wednesday.  I hope this is correct as this is the only thing I am waiting on for my filing and I am getting a  refund!   Thank you... sincerely Deb Kelly 

[macuser_22]

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@Deb Kelly wrote:

Hello friends. some one .. in this nice  community said  TurboTax would be updated with this form on Feb 24th  Wednesday.  I hope this is correct as this is the only thing I am waiting on for my filing and I am getting a  refund!   Thank you... sincerely Deb Kelly 

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The forms availability list shows 2/25 which means any time before midnight so check on the 26th. Updates are usually done at night during low traffic periods.

[yrrek18]

I got an email saying its there, but I don't see it any luck ?

[bigdaddyredleg]

Have the forms been made available for the CARES Act by the IRS Yet?

[MinhT1]

@bigdaddyredleg

The Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) has just been finalized by the IRS on February 12, 2021.

TurboTax has now updated the program and the form will be e-fileable starting February 25.

[Deb Kelly]

Hello Turbotax friends and Big Daddy. love the handle..  are you  Adam Sandler under cover?  I can't find the form in turbotax either- and last I heard .. from TurboTax elves  was supposed to be updated in TurboTax yesterday..  Help Turbotax elves... sincerely,  Deb Kelly 

[Srhogan1984]

I can’t Find it either. 

[SamS1]

The 8915E is live in the Online product but is not available yet for the desktop products.  I would suggest deleting the 1099R and re-entering it then checking the box for Covid related distribution in the Uncommon Situations screen.  The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years.  This may be a good option if the distribution is pushing you into a higher marginal tax bracket in 2020.  You may end up paying less tax if you spread the distribution over the 3 years.

[danaT]

I just deleted my IRA, reentered it and this option does not show up at all????   I am about to give up and go pay someone to get this done. 

[Deb Kelly]

I am losing it else I have lost it. I re entered everything on the 1099-r  there was no pop up for the covid cares act where is it supposed to be ? thank you