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Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

My State return literally is in orbit right now.... waiting for TT to let me file it.

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Any word on when the fix will come through to file Federal and State electronically?  The last I heard was 3.25.21.

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

I have no word on when this will come through.  I hadn't even heard about the 3/25 date.

I'm a bit surprised given how many people must be experiencing this.

As someone else said, the sign up page (to be notified when the fix is released) has been visited ~3,000 times.

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Are you not able to file? I think people were able to file as of last Thursday or so.  Did you check for updates?

 

The problem we have is that some of us filed our federal separately while waiting for them to fix state pension deduction worksheet. Unfortunately for us, we have to wait for them to fix a bug in their system so that we can file our state separately.

LinaJ2020
Expert Alumni

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

This issue is scheduled to be resolved in a product update March 19, 2021.  Please click on the following link to receive an email notification when any updates become available.

 

Not able to e file state return after Federal

 

The Form 8915-E 10% penalty issue has been resolved.  Make sure you update your program.  

  • If you are using the TurboTax CD/Download software program, open TurboTax and select Check for Updates from the Online menu near the top.
  • If you are using the online version, it's an automatic update when you sign in and out. 

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty

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LinaJ2020
Expert Alumni

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

This issue is scheduled to be resolved in a product update March 19, 2021.  Please click on the following link to receive an email notification when any updates become available.

 

Not able to e file state return after Federal

 

As far as the Form 8915-E 10% not subject to penalty issue, it has been resolved.  Make sure to update your program.

  • If you are using the TurboTax CD/Download software program, open TurboTax and select Check for Updates from the Online menu near the top.
  • If you are using the online version, it's an automatic update when you sign in and out. 

 

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Will we need to start all over when this update is ready?  I ask because when I open my Turbotax on my desktop it takes me to the LET'S BEGIN screen to file a new return.  When I click LET'S BEGIN it looks to transfer my 2019 return as if I haven't started my 2020 return.  

 

I have my 2020 return saved on my computer so I clicked that instead and it allows me to go to where I left off with the page on my state form with the error that's supposed to be rectified on 3.19.21.

 

Is this happening to anyone else?

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Opened TT today (Deluxe version for Windows).

It auto-updated with the fix.  🙂

I was then able to e-file my NYS returns without incident.

Just waiting to for NYS to formally accept the return.

Good luck to all who had this issue.

 

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Hello @msrite2020 

I did not have the problem you indicated (I'm using TT Deluxe for Windows).

When I opened TT Deluxe this morning, it auto-updated with the fix ("can't file state without federal" even though federal was already e-filed and accepted).  From there, my return was already showing completed (at the e-filing stage) so I clicked continue e-filing state and it went through (after confirming driver's license and bank info).  I did not have any other issues and am simply awaiting NYS to accept it.

Good luck!

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

I just updated Turbotax and e-filed Federal and State without an issue.  State hasn't been accepted yet but that's normal.  Federal has been accepted.

 

Glad this has been resolved--Yay!

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?


@msrite2020 wrote:

Will we need to start all over when this update is ready?  I ask because when I open my Turbotax on my desktop it takes me to the LET'S BEGIN screen to file a new return.  When I click LET'S BEGIN it looks to transfer my 2019 return as if I haven't started my 2020 return.  

I have my 2020 return saved on my computer so I clicked that instead and it allows me to go to where I left off with the page on my state form with the error that's supposed to be rectified on 3.19.21.

Is this happening to anyone else?


No, you don't need to start over after an update.

 

The following is probably what you experienced, but I don't know why  you lost the icon in your program.

When one has a return in progress that has been saved at least once, then when one launches TurboTax the next time, it normally opens on a screen that has large rectangular icons which are shortcuts to any saved returns (of that year).  It sounds like your shortcut icon to the saved return was gone, so all you saw was the blue "Begin" button.    Luckily the underlying *.tax2020 data file you had saved was still present.

 

If that ever happens, when using the Windows version, one can normally launch TurboTax and click on FILE in the top left corner of the TurboTax screen, and in the dropdown menu choose Open Tax Return.   It will then ask you where the data file is located, or it may already see it in the default location, which is the \Documents\Turbotax folder if using Windows.    Once you save the file, it should put the large rectangular icon back in the home screen of the desktop TurboTax, for easy opening of the data file the next time.

 

As you mentioned, while you "can" click on the *.tax2020 data file to launch the 2020 program, it's not normally recommended except perhaps in a pinch like this.  But if it happens again, just go the top left corner FILE menu and "Open Tax Return."

Pension deduction worksheet/early w/draw due to Covid-19. Retirement distribution. Federal Amount. When will this be fixed?

Thank you very much!  Everything worked out once the update took place and now my taxes have been filed and accepted 😁

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