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Spitzmi1
New Member

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

want to spread IRA distribution over 3 years and pay the taxes over three years. How do I do it?

CatinaT1
Employee Tax Expert

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

There will be a question regarding this after the 1099-R is entered.  First it will ask questions to determine if it is an eligible Covid related distribution, then you will be asked if you want to have it all taxed now or over 3 years.

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Referee
New Member

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

I saw the option last week to spread income over three years but I elected to pay all taxes this year.  I have not filed yet.  Over the weekend I changed my mind but I am no longer being provided with the option/question to pay over 3 years.  How do I switch back?

DawnC
Employee Tax Expert

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

Do a search for 1099-R and then used the Jump to 1099-R link to be taken to your retirement income summary.    On the summary screen, scroll to the bottom of the screen, and click on either Done or Continue.   You will be asked about prior year disaster distributions and then you will eventually come to the option to spread the tax over 3 years.   The default setting is to spread the tax but if you already told TurboTax you want to pay all the tax in 2020, you will have to click on the checkmark in the box to remove it.   Once the checkmark is removed, TurboTax will generate Form 8915-E and make the election to pay the tax in 2020-2022.   

 

To spread the tax, uncheck the box when you get to the screen below.     @Referee

 

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Referee
New Member

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

Thanks DawnC but the option to spread income over 3 years still does not show.  I get the Here’s your 1099-R Info screen.  I click on continue and answer the disaster distribution question.  The next screen takes me to the main income screen listing all of the different types.

AmyC
Employee Tax Expert

How do I claim a 1099-R from a Cares Act 401k withdrawal? I do not see an option to spread it over three years as the IRS site claims.

Follow these steps:

  1. Return to the 1099-R, edit/update
  2. Box 1 gross distribution
  3. Box 2 taxable amount, enter the full amount
  4. Box 7, code 1
  5. taxes withheld
  6. continue
  7. About the Money... continue
  8. Answer IRA, Safety Officer, continue
  9. Select your state, continue
  10. Where Is this Distribution from? Neither of the above, continue
  11. What did you do? Something else, continue
  12. Periodic payments? No, continue
  13. Was this COVID? Yes, COVID, continue
  14. How much? Enter all or portion, continue
  15. Receive before Dec 30? Yes
  16. Did you or dependents test positive? answer
  17. Did you have reduction in income or other on the list? answer, continue
  18. Did you repay any? answer, continue

@Referee

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