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?

[macuser_22]

If already entered it is best to delete the 1099-R and re-enter to reset everything.

[Taxesaretheworst2021]

Yes I have done this too. It’s not taking the 10% that’s all fine it’s just not letting me file because of a pension deduction worksheet error that comes up when checking my state return.

turbo tax said today that it’s not all updated yet. I’ve called three times today  and I got the same answer three times that I should check back Monday or next week sometime.

2/28/21 @1:30 still can’t file. I went as far as deleting ALL my info and starting from scratch and still get the same error

[DoninGA]

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@Taxesaretheworst2021 wrote:

Yes I have done this too. It’s not taking the 10% that’s all fine it’s just not letting me file because of a pension deduction worksheet error that comes up when checking my state return.

turbo tax said today that it’s not all updated yet. I’ve called three times today  and I got the same answer three times that I should check back Monday or next week sometime.

2/28/21 @1:30 still can’t file. I went as far as deleting ALL my info and starting from scratch and still get the same error

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You can still e-file the federal tax return without filing the state tax return at this time.  Go to the File section and complete all 3 Steps to e-file.

[72lilmama72]

Well today is 3/2.... it still doesn't let me file my state taxes.  Same error keeps coming up! 

[EbonyA]

@72lilmama72 You may want to check and see if any of your required state forms are unavailable; you may check that here.

[Taxesaretheworst2021]

I can’t either. This is what the error says

Pension Deduction Worksheet: Federal Amount We're still working on updates related to retirement distributions that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when it's ready.

when I scroll to the bottom there are two form numbers for my state one says both are available  as ready to efile the other says available ans not supported. When I called my state revenue office they said both forms are available for efile as of 2/12.

[KathrynG3]

This is a known issue for the state of Michigan. The engineers are working on it as fast as possible so you can proceed.

This is what is happening: Every state is different. Michigan does conform to the federal rule about an early pension/IRA withdrawal. The 10% early withdrawal penalty is waived and the tax on the withdrawal is paid over three years. Other states do not conform at all, some states conform to part of the new legislation. 

Form MI-1040 brings over the Federal Adjusted Gross Income as usual, which would include only one third of the total early pension/IRA withdrawal. The Pension worksheet will be updated as soon as possible to match this. Since the worksheet currently does not match the state form, TurboTax is warning you to wait for that the worksheet before e-filing the state.

For more information, see: How are my taxes affected by the coronavirus (COVID-19) pandemic?

@Taxesaretheworst2021

[csimmons1959]

Not sure if this is a proper work around but putting 0 instead of amount since earlier it asked the question of taxes and how much was used toward covid 19. 

[WendyN2]

If zero dollars were used as "relief money", which I can't imagine they were not, then putting a zero there would be the correct thing to do. However, I would give it a little more time so that your filed information is accurate. That way you won't have to file an amended return. 

[Taxesaretheworst2021]

THANK YOU!!! 

First actual response that explains what’s happening! Thank you we will keep an eye on it!

[norfolk2]

I am also having this issue where it says I reported $0 for the COVID withdrawal on Federal, right after I told it the actual amount, so it's ignoring the distribution amount when calculating taxes owed

[kait11lynn22]

I am having the same issue when trying to file my NYS taxes. I had contacted TurboTax and also read in other threads that those who were running into this issue could e-file federal and wait for the state issue to be corrected. I have since done this and federal was accepted. I am hoping the advice has not changed and I won’t run into any issues with having done that. 

[Taxesaretheworst2021]

I did this as well. I wouldn’t think it would be an issue from what I understand this is on the state side but it’s a federal number. But I know what your saying, I hope not either. 

[Andrushka05]

I am also in NYS, and I'm all set but waiting on turbotax. They fixed the federal since 2/26 and I have been waiting on state since then. I have mac download version. Turbotax is a bit disappointing, dragging their feet. I check NYS website and it says they follow federal rules for the CARES act 401k withdrawals, so I don't see any reason why Turbotax shouldn't have this figured out already.

[LovelyLi]

I am having the same exact issue with my state return.  I spoke with a TurboTax rep and was told that more updates are needed by the state in order to move forward with e-filing.  However, he did not know when these updates may take place.  Sigh!