Cares Act Covid-19 distribution from 401k 2020 broken up over 3 years (2020, 2021, 2022) Did not receive a new 1099-R for 2021. Turbo tax doesn't ask for info for this?

[clover716]

Original poster here- its still not working correctly for me. It seems as if it is having me pay 2/3rds this year and it does not show up on my income page at all. It all seems to look messed up this year. I have tried to clear it out and start over- its not helping. I wonder if we will be able to file for an extension because of this! Has it successfully worked for anyone? 

[FloridaJo]

You can file an extension for any reason or no reason at all.

8915-F has worked for me.  It put 1/3 of the 3/3 into the taxable column.

And even though TT asked for a disaster name, which I put in 'coronavirus' it did not fill that out on the form.

(which it was not supposed to).

[Rennaegade]

It definitely fills it out when you check your hard copies. Unless they updated it yesterday my 8915F shows Covid-19 in fema disaster name 

[Rennaegade]

The software definitely works in the sense that it puts the 1/3 in 5B but for whatever reason it keeps asking for a disaster name which it shouldn’t but in any case that doesn’t affect how it computes taxes 

[clover716]

Does it show up in your income? It’s not listed i

on mine, I fill out the whole form, it looks correct (except the changes to my refund) and then it ends up telling me that I will have to go back to it. I’m not sure what the problem is. 

[DoninGA]

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@clover716 wrote:

Does it show up in your income? It’s not listed i

on mine, I fill out the whole form, it looks correct (except the changes to my refund) and then it ends up telling me that I will have to go back to it. I’m not sure what the problem is. 

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Go back to the Retirement Income section for a Form 1099-R and review your answers.

If you had a Covid-19 related distribution in 2020 and selected to spread the distribution over 3 years -

Answer No when asked if you received a Form 1099-R in 2021, if you did not receive the form

Answer Yes when asked if you took a disaster distribution

Answer Yes when asked if you took a Qualified 2020 Disaster Distribution

Check the box that this was a Coronavirus-related distribution reported in 2020

If the 2020 distribution was from an account that was Not an IRA

2020 Form 8915E Line 9 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 -  Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

[turbota888]

I see it puts 1/3 in 5B but my federal tax due goes up by 37.2% of the of that amount.  I am not in the 37% tax bracket. 

Also, my CA state tax goes up by 9.67% of that amount which also isn't my correct tax bracket.

Am I missing something?

[VolvoGirl]

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

Like for example it increased your AGI and that would decrease some deductions if you itemized on Schedule A.  And by increasing your AGI it might reduce some credits you were getting like EIC.  And can make more of any Social Security taxable.

I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.

[golferandwife]

I got it to work for me finally.  I didn't enter a 1099R for 2021 (didn't have one).  It asked me if I'd taken a disaster relief distribution (yes), asked if it was Coronavirus-related in 2020 (yes), it opened up boxes related to my 2020 8915-E entries.  I put those in (original amount of distribution, 1/3 amount from 2020).  I had to put that 1/3 amount in two different fields (to verify I hadn't paid the full taxable amount in the first year).  This resulted in an 8915-F being created, and the taxable amount of just 1/3 was recorded on the 1040 line 4b.  After a smart check, it opened up the form and asked for the FEMA description, I just typed in COVID and it accepted it.  Then it cleared the checks.  If it asks you again if you took disaster relief and if you say yes, it tells you to go back to that section, just say OK and it's done, you don't really have to go back.

[humansan]

Just to cross check, can you file electronically, or do you have to print and mail?

[cathy_f]

This is the crap that makes me want to quit using TurboTax and migrate to another program.

I finally figured out what numbers I needed to put in by reading the freaking IRS instructions on the form!

Here is a screenshot of the TurboTax entry form:

https://www.dropbox.com/s/h26pexfm7wkog3y/TurboTaxDataEntry.png?dl=0 

First question -- why is TurboTax asking me what is on my 2020 Form 8915E?!? TurboTax filled out my 8915E last year, and I transferred last years forms into this year!

But, anyway, here's lines 12-19 from my 2020 8915-E as TurboTax 2021 filled it out. I have not made any repayments since I took the distribution.

https://www.dropbox.com/s/tzpx2x9ax3awlb7/8915-E2020.png?dl=0 

Here's the TurboTax confusing mumbo jumbo:

2020 Form 8915E, line 17, if you checked the box on that line, enter 0

2020 Form 8915E, line 18
2020 Form 8915E, line 17

Here's MY instructions:

Look at lines 16 and 17 on the 2020 Form 8915E. If the check-box in the middle of the instructions for line 17 is checked, then line 17 should be equal to line 16. If the check-box is not checked, then the amount on line 17 should be line 16 divided by 3 (one-third of the line 16 amount.)

NOW -- start filling out TurboTax form FROM THE BOTTOM LINE FIRST.

1. In the bottom box, enter the amount on line 17 of the 2020 Form 8915E -- and no, that's not a typo, line 17 goes here. This will either be the amount on line 16 (box was checked) or one-third of the box on line 16 (box was not checked.)
2. In the second box from the bottom, enter the amount from line 18 on the 2020 Form 8915E
3. To decide what number to fill into the third box from the bottom -- that's the box to the right of the garbled nonsense "2020 Form 8915E, line 17, if you checked the box on that line, enter 0" -- follow these instructions.

• If the amounts on line 16 and 17 of the 2020 8915E are equal and the check box is checked, enter 0. (zero) in that box
• If the checkbox in line 17 on the 2020 8915E is not checked, and the amount on line 17 is one-third the amount on line 16, enter the amount on line 17 into that box.

This would have been a whole lot simpler if TurboTax would have just loaded the info that it filled out on last year's 8915E. Even if it couldn't do that, it should have simply asked for the numbers on lines 16, 17 & 18, and whether the box was checked...

[golferandwife]

You can file electronically, the 8915-F will be included in the filing.

[joshuart18]

I have a question. Turbotax shows this form to be available but is not giving me the option to select for Covid-19 It's only giving me options of other natural disasters.

[clowe22c]

Same issue . Entered the info but our estimated tax did not change . Do we have to upgrade our version of TT for it to work ? 

[DoninGA]

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@clowe22c wrote:

Same issue . Entered the info but our estimated tax did not change . Do we have to upgrade our version of TT for it to work ? 

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Go back to the Retirement Income section for a Form 1099-R and review your answers for the 2020 distribution.

If you had a Covid-19 related distribution in 2020 and selected to spread the distribution over 3 years -

Answer No when asked if you received a Form 1099-R in 2021, if you did not receive the form

Answer Yes when asked if you took a disaster distribution

Answer Yes when asked if you took a Qualified 2020 Disaster Distribution

Check the box that this was a Coronavirus-related distribution reported in 2020

In the box 2020 Form 8915-E, line 4, column b - Enter a 0

If the 2020 distribution was from an account that was Not an IRA

2020 Form 8915E Line 9 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 -  Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

Do not enter anything in the other boxes, leave them blank (empty)

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

Using the desktop editions click on Forms.  Open the Form 1040