The "IRA, 401(k), Pension Plan Withdrawals (1099-R)" keeps saying "Needs Review"? When will this be fixed? TCOVID-19, CARES Act related?

[RHartness]

Like many, I withdrew a large sum of money from my IRA back in 2020 for COVID related needs.  TurboTax hasn't been able to enter the related values until around the end of last week.  I entered the correct prompts in the IRA, 401(k), Pension Plan Withdrawals (1099-R)" section of TurboTax, but when I finish, that section keeps saying "Needs Review".  Furthermore, after entering the respective values related to my former 8915-E document which it requests for, my expected taxes/refund is never updated.  In fact, it's reporting that I'll be getting a refund, but I'm quite sure I should be paying taxes.

Is this a bug and how can I fix this?  I don't know what to do because TurboTax never reports an error, but doesn't seem to be applying these values to my taxes.

[DoninGA]

You have to enter the 2nd year of the distribution in both boxes shown for the type of 2020 distribution received from the retirement account.

You are getting the Review because you selected YES instead of NO on the screen Did you take a disaster distribution at any time between 2018 and 2020?

In the box 2020 Form 8915-E, line 4, column b - Leave blank or enter a 0

This is not required on a Form 8915-F for a Coronavirus-related distribution

If the 2020 distribution was from an account that was Not an IRA

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

2020 Form 8915E, line 9, if you checked the box on that line, enter 0

2020 Form 8915E Line 9 

If the 2020 distribution was from an IRA account

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

2020 Form 8915E, line 17, if you checked the box on that line, enter 0

2020 Form 8915E Line 17 

Do not enter anything in the other boxes, leave them blank (empty)

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

After completing the Wages & Income section you will land on a screen Did you take a disaster distribution at any time between 2018 and 2020?

Answer NO since you have already completed the entering the 1/3 of the 2020 distribution.

[RHartness]

This didn't fix the problem.  To be clear, in 2020, I took out 100,000.  I have no intent to repay this.  I intend to spread this across 3 years, and that's what I elected for in 2020.  The screenshot below is what I've entered.  Note, from my understanding of what is being requested by TurboTax, and reading over my 8915-E generated by TurboTax from last year, this is correct.  Regardless, I keep being told this needs to be reviewed.

Oh, and FYI, field #9 on my 2020 8915-E is empty, and does not have a 0.  I still have this issue whether I enter a 0 or leave it blank.

[DoninGA]

@RHartness Look at your tax return Form 1040 Line 4b.  The amount for the 2nd year of the distribution, $33,333 should be entered on Line 4b as taxable income.

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

You should not receive the "Needs Review" if -

You Leave blank or enter a 0 in the box for 2020 Form 8915-E, line 4, column b

and 

You selected NO for the question Did you take a disaster distribution at any time between 2018 and 2020?

[RHartness]

@DoninGA 

First, thank you for your willingness to assist and, second, I apologize for my ignorance and not getting this.

With that said, these instructions that I screenshotted mention nothing about a 1040.  Instead, they tell me to reference my 2020, 8915E.  Again, when I entered these details last year, TurboTax created the 8915E document.  I downloaded it and for reference I have it open right now.

To be clear and to triple-check, I re-opened the document and entered the details exactly as they are in the 8915E.  Line 4 column b, has the value of $100,000.  (This is the full amount I withdrew from my IRA.) Field 9 is NOT checked, and the field is blank.  Field 10 is also empty.  On my first attempt, I entered empty values in all three of these fields that are requested by TurboTax this year. 

Last, field 17 is also NOT checked, but has the value of $33,333 enter  in it.  So, for the field "2020 Form 8915E, line 17, if you checked the box on that line, enter 0" in TT the year, I entered $33,333 since that's what's in field 17 from my 8915-E form.  Last, field 18 is empty and for what ever reason, they ask for field 17 again in TT, so I again entered 33,333.

Again, I'm not trying to sound rude and I do appreciate your help, but I am entering my data from last year as I see it, and I still can't get this to finish properly.  What am I missing?  Since there is no personal info on this portion of the document, I am including screenshot of my 8915E's related fields.

[DoninGA · Accepted solution]

@RHartness Understand, and I do not think you were being rude.

The problem is, which I should have mentioned originally, is that there is a program bug that has yet to be fixed by the programmers.

You are absolutely correct that the amount of the distribution from the Form 8915-E Line 4 Column b should be entered in the box as stated.  However due to the program bug, doing that causes the Needs Review in the program to ask you during Federal Review to enter a FEMA Disaster number in the box on the Qualified 2020 Disaster Retirement Plan Distributions and Repayments Worksheet when entering this number is NOT required.

Entering anything in the FEMA Disaster number box flows to the Form 8915-F Item C.  But since the Item D box is already checked nothing should be entered in Item C.  Item D specifically states -

If your disaster is the coronavirus, check this box ▶ Don’t list the coronavirus in item C.

For this reason, in my procedure, I ask that the box 2020 Form 8915-E, line 4, column b be Left blank or enter a 0.  Because entering any number in this box causes the Needs Review to be activated in the Federal Review.

The other issue is when users are asked the question Did you take a disaster distribution at any time between 2018 and 2020? and they answer Yes, they are asked to return to the Form 1099-R section when it is not required since they have already completed the entry of the 2020 Coronavirus-related 2nd year distribution.

Thar is why I have then enter a NO, since that section is already completed and then the program will not ask then to return to the 1099-R section.

Hope this makes sense to you.

[RHartness]

@DoninGA , Thank you so much for your help!  I was able to finish my taxes.  I appreciate you working with my many questions too!

[GrizABQ]

I had the exact same problem but the solution above did not clear the "needs review." However, it is not preventing filing and the 1040 looks correct.