How to amend 2020 taxes for Covid 19 IRA distribution; full repayment in 2022.

[imthedoctor]

We took a $80k Covid-19 IRA distribution in ty2020 and divided it over 3 years and repaid $10k before filing for 2020. Now, in early 2022 we have repaid the entire amount (the additional $70k).  Now I need to Amend my 2020 taxes to show that repayment. My intention is to show a $30k repayment in 2020, a $20k repayment in 2021, and a $30 repayment in 2022. The only way I can find to change the repayment information (from $10k to $30k) is to delete the Form 8915-E and reenter the "amount rolled over to another (or back to the same) retirement account" in the step-by-step dialogue. Is this correct? Or is there another way to amend this value?

[DanaB27 · Accepted solution]

No, do not delete Form 8915-E and enter it "amount rolled over to another (or back to the same) retirement account". Please see the instructions below.

Yes, you will need to amend your 2020 return to carry back the amount of the repayment. You will only enter as much repayment as was taxable in 2020. The rest of the repayment will have to be allocated to 2021 and 2022.

Since you repaid already $10,000, you will add the $16,667 to the $10,000  and enter $26,667 but please check how it was rounded on your return. Only reduce the distribution amount to $0.

Please follow these steps:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. If you do not have any 1099-R answer "No" to "Did you get a 1099-R in 2021?"
5. Click "Edit" on the “Your 1099-R Entries” screen
6. Continue through the questions until "Did you repay any of this distribution" and select "I repaid part of the distribution"
7. Enter the amount of repayment allocated to 2020.

"If you make a repayment by the due date of your 2020 return (including extensions), include the repayment on your amended 2020 Form 8915-E.

If you make a repayment after the due date of your 2020 return (including extensions) but before the due date of your 2021 return (including extensions) and you have spread the income over 3 years, include the repayment on your 2021 Form 8915-E. However, you may file an amended Form 8915-E for 2020 if either of the following applies.

• You elected on 2020 Form 8915-E, lines 9 and 17, as applicable, to include all of your qualified 2020 disaster distributions in income in 2020 (instead of over 3 years).
• You have spread the income over 3 years, the amount of the repayment exceeds the amount of your qualified 2020 disaster distributions that are included in income on your 2021 Form 8915-E, and you choose to carry the excess back to 2020. See the example below.

Example

You received a qualified 2020 disaster distribution in the amount of $90,000 in 2020. The distribution was made on October 16. You choose to spread the $90,000 over 3 years ($30,000 in income for 2020, 2021, and 2022). On November 19, 2021, you make a repayment of $45,000. For 2021, none of the qualified 2020 disaster distribution is included in income. The excess repayment of $15,000 ($45,000 - $30,000) can be carried back to 2020. Also, instead of carrying the excess repayment back to 2020, you can choose to carry it forward to 2022." (IRS)