401k Cares Act Covid Withdrawal and Repayment?

[Opus 17]

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@m06wc21 wrote:

SamS1: In 2020, I took out 401k and chose to split it up over 3 years. This year will by 2nd year paying back a third. Do you know if I use the same 1099r I got for the original withdrawal, the same amounts and everything? For this years third... and next year as well? 

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You won't get a new 1099-R, because the trustee paid you last year and its not their job to know how you reported it on your tax return.  This section of Turbotax isn't quite ready yet, but maybe the end of the week or next week.  What I suspect will happen is that you enter the 1099-R section and the program will ask "did you have a coronavirus distribution that you deferred over three years?" and you will say yes and then provide whatever information is requested. 

[tommydearest]

So, it looks like you can't count current 401k contributions as repayment.  Understandable, since these are pre-tax contributions.  But, what about current Roth 401k contributions?  My wife left a job in 2020.  Instead of rolling over her 401k, she emptied the account as a CARES Act distribution.   She has been contributing to her new job's 401k traditional AND roth.  Can we count her 2021 Roth contributions as repayment on that CARES Act distribution?

[Critter-3]

Can we count her 2021 Roth contributions as repayment on that CARES Act distribution?   Sorry ... no. 

[bristk]

It's March 8th and it appears turbo still doesn't have this ready. Any notice to when this might be?

[FangxiaL]

The 8915-F form is scheduled to be e-file ready on 3/24/2022.

@bristk

[Caseyblue]

Still waiting for 8915-F form to be e-file ready

[New User 2022]

if i didn't report the withdrawal in my 2020 taxes thinking I could pay it back in 2022 but realize I am not able to. Can I add the total amount withdrawn in my 2021 taxes?

[fanfare]

@New User 2022 

if you did not report it you must file an amended 2020 tax return.

You may be subject to penalties and interest.

[New User 2022]

Thank you for the response, I seen in the Turbo Tax program it states if you took a qualified distribution in 2020 to check yes if you want to report 1/3 of the income ion addition to the 1/3 for this year. It states IRS will make the necessary adjustments with your refund , if this is the case would you still have to file an amended return since you're including the distributions in the 2021 income and asking IRS to include the 1/3 from the previous year. 

[Caseyblue]

8915-F form Has still not been integrated into TurboTax Premier.

Need it in order to efile

[fanfare]

" It states IRS will make the necessary adjustments with your refund "

I don't see anything on 8915-F that lets you add another 1/3 that you forgot to list last year.

If you double the amount, you are filing an incorrect tax return, and now you have two bad tax returns.

If you want to rely on IRS to fix all these errors for you, they won't do it.

They will send you a letter telling you you have to file an amended return for both years.

[JamesG1]

IRS Form 8915-F information can be entered at the screen Did you take a 2020 Qualified Disaster Distribution?  I was able to report Qualified 2020 Disaster Distributions From Retirement Plans (Other than IRAs) in Part II from the 2020 8915-E by following these steps.

• Go to Federal / Wages & Income / Retirement Plans and Social Security / I'll choose what I work on / IRA, 401(k), Pension Plan Withdrawals (1099-R).
• Click Start / Revisit to the right.
• At the screen Did you receive any 1099-R forms? select No.
• At the screen Have you ever taken a disaster distribution before 2021?, Click Yes.
• At the screen Did you take a 2020 Qualified Disaster Distribution?, enter 8915F and 8915E information.

I was able to generate an IRS Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments and report distributions other than IRA's in Part II.

• I did not repay any 2020 Qualified Disaster Distribution in 2021.
• I did not report a disaster distribution in 2017, 2018 or 2019.
• I reported No for the second question Did you take a disaster distribution at any time between 2018 and 2020? after the section Wages & Income and before the section Deductions & Credits.

The intent is for you to see the 1/3 spread over three years:

• Included on the 2021 Federal 1040 tax return line 5b,
• Not included on the 2021 Federal 1040 tax return line 5a, and
• In Part II of Form 8915-F on lines 12, 13 and 15.

@Caseyblue
 

[bldeviled]

I took a $100K CARES ACT withdrawal from my IRA in 2020.  I paid tax on 1/3 when I filed last April for year 2020.  I plan to claim 1/3 of the remaining $66.6K now for year 2021.  I want to pay the remaining 1/3 back in order to avoid having to claim this $33.3K as income for this year (2022) when I file my taxes in April of 2023.  How do I pay this remaining balance of $33.3K back, and what is the deadline for doing so in order to avoid having to claim this income as taxable income for 2022?  If I pay it back now, will I have to claim 'some' of this amount as income since I'm paying it back in early April 2022, and not paying it back before January 1, 2022?

[DaveF1006]

 If you are thinking about paying back 1/3 of the remaining distribution in 2022, you have until Aug 31 of this year to pay back the distribution to avoid paying taxes on it in 2022.  To pay it back, you will need to contact the trustee of your requirement account for repayment instructions.   

If you pay it back by Aug 31, you will not need to claim it as income in 2022. Here is an IRS source for further information.

@bldeviled

[Caseyblue]

Followed first few steps but was not given option to say I did not receive 1099R.

My facts:

1. took early withdrawal under Cares act in 2020 & received 1099 R.

2. Filed form 8915-E & repaid 1/3 back last year

3. intend to pay another 1/3 back this year.

4.TurboTax Premier still does not have 8915-F

form. 
5. when I run smart check, I receive error message”can’t file just yet due to disaster relief laws..we’ll let you know when ..”