It looks like the IRS has released Form 8915-E for Coronavirus Distributions from 401k. When will Turbo Tax have that form in place so I can finish my taxes?

[72lilmama72]

Yeah I keep checking everyday.  I don't understand why this is taking so long. 

[Taxesaretheworst2021]

I got the same advice. Keep checking back. 

[Anonymous]

@Taxesaretheworst2021 @72lilmama72  as of 930am today, still cannot file NYS taxes.... filing gets held up on the Pension/Annuities/IRA Worksheet....

Come on TurboTax, get your program corrected!!!!!

[MistyRader1978]

Doesn’t it drop the 10% off of state also or just federal?

[shk_shk08]

There is no COVID related option to check when we go over employer related distribution and Turbotax keep saying you have to pay extra 10% penalty. How do I get 8915-E form and attach with 1099 R.

My spouse took early distribution on 401 K and withheld federal tax (10%) before the distributions came to us. I do not know why Turbotax has noCOVID related option for employer distribution but for employee related distribution it was there.

Please help.

[DoninGA]

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@shk_shk08 wrote:

There is no COVID related option to check when we go over employer related distribution and Turbotax keep saying you have to pay extra 10% penalty. How do I get 8915-E form and attach with 1099 R.

My spouse took early distribution on 401 K and withheld federal tax (10%) before the distributions came to us. I do not know why Turbotax has noCOVID related option for employer distribution but for employee related distribution it was there.

Please help.

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What is the code in box 7 of the Form 1099-R?  Is there a taxable amount entered in box 2a of the Form 1099-R?  Are any boxes checked in 2b?

Is the box IRA/SEP/SIMPE box checked?  Was any amount of the distribution rolled over to another retirement account or to a Roth IRA or Roth 401(k)?

[shk_shk08]

What is the code in box 7 of the Form 1099-R?- 

B1 or 1B

Is there a taxable amount entered in box 2a of the Form 1099-R? 

YES

Are any boxes checked in 2b?

NO

Is the box IRA/SEP/SIMPE box checked? 

NO

Was any amount of the distribution rolled over to another retirement account or to a Roth IRA or Roth 401(k)?

NO

[DoninGA]

@shk_shk08 

I just entered information for a Form 1099-R using my desktop software and it specifically asked if this distribution was Covid-19 related.

Are you using the TurboTax online editions?  If so, this may be an issue.

@macuser_22 Did you run into one of these with a code 1B using the online editions?

[macuser_22]

Currently the online version will not present the COVID related questions for a 1099-R with a box 7 code that contains a "B".

User dmertz posted the following workaround for the Online version 1099-R code B bug.

In online TurboTax a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only code 1, 2 or 7 (If box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.

[shk_shk08]

Yes, I am using online editions. That may be an issue. It only does for Employer but for employee related distribution it has COVID option.

[shk_shk08]

Thanks a lot. It helped.

[ajd878787]

@KathrynG3 any idea if they are also working on NY and HI ?

[Andrushka05]

I tried to find answers but there are numerous people on this forum that have spent hours with customer service and even redid the taxes from the start with out success with state.  I attempted today and my mac download version ran an update and it actually specified for NYS, however I went in adjusted the 401k in the state income and it was correctly listed amount of taxable disbursement since I’m splitting it into 3 years per Catrs act, however when attempting to finalize it still runs an error on the state form and incorrectly lists the total 401k withdrawal instead of the taxable, and message reads that TurboTax still working on state. So can’t file as of today. I’m quite a bit annoyed with TurboTax but since I purchased the software don’t really feel like paying more to go somewhere else at this point. I have looked up NYS rules for cares act and they list that they follow same as federal rules for it, so TurboTax really needs to get its act together. 

[Taxesaretheworst2021]

Just updating anyone who is following March 7th 6:09am still cannot file my state taxes (Michigan).

last time I called turbo they said to wait a week it’s been over a week now so I plan on calling Monday or Tuesday when I have time. 

Very frustrating idk if I took my taxes to HR or taxslayer if this issue would be resolved but I’m hoping not to have to mess with that now since I filled my federal thru turbo. Does anyone know if that would matter? I wouldn’t think so as long as it gets turned in. I’m just getting worried we will not have it fixed by April 15 and that deadline is approaching fast. 

[TaxOnFifthAve]

I have the same issues for WI. Federal went through. Taxes for a nonresident state went through, but my WI (residential state) return is being held up by line 22 (Penalties on IRAs, retirement plans, MSAs, etc. I waited a week hoping they would have made the update and I would have the option to file, or the 8915-E form was available, but it doesn't look like that has happened. I kept this forum page bookmarked hoping to see people sharing success, but it looks like we're all still in a holding pattern thanks to TT. 

Any change for anybody? Anyone get their state to go through yet? And if so, which state(s)?