I took out my 401K of $1700. What will I pay in and forms will need to be filled out on my taxes?

[Irene2805]

If you made the withdrawal in 2020 you should be receiving a 1099-R form from the administrator of the account.  The amount will be added to your taxable income.  However, the IRS has not finalized instruction related to disaster distributions.

To enter the 1099-R please follow these steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R). 
3. If you've already entered one (or more) 1099-Rs, you will see a screen Your1099-R Entries.  
4. Now you can click on the link Add Another 1099-R. 
5. If you haven't already entered a 1099-R, you will see the screen, Your1099-R. Click Yes and then Continue.
6. Click the I'll type it in myself box.   
7. On the screen, Tell Us Which 1099-R You Have.  Make sure you select the correct form and then click Continue.
8. When you are finished entering the 1099-R information, you will be brought back to the Your 1099-R Entries screen.  Click Continue if you have no more 1099-Rs to enter.

You'll need to revisit this area. The IRS instructions related to disaster distributions weren't ready in time for us to include them in this release. Please revisit this area later.

[SMelton831]

@Irene2805 When does Turbo Tax expect to receive this information or when should we check back? 'Please revisit this later' is kind of ambiguous. 

[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.

[krsbozo]

Hi @CatinaT1 ,

Thanks very much for the reply here. I'm assuming that if I have a regular distribution -- nothing related to the pandemic or disaster -- then nothing related to the form or the taxes will change. But I gather it's best to just wait anyway, until the form is finalized. 

I can see that TurboTax is still telling me that I need to revisit the form 1099-R as part of the review. And I'm assuming that when the form is updated, this flag will be removed, yes? 

Thanks again. 

[SamS1]

No.  If you are not needing Covid-19 relief for you retirement plan distribution, you will not need to wait for the 8915-E form.  Make sure and check the uncommon situations and if none of these apply, indicate None.  If you are over 70 1/2 you will see some RMD screens.  There you can enter None also since RMD is not required in 2020.  I would review the 1099R closely.  If you imported it, I would recommend deleting it and typing it in yourself.