Why does TURBOTAX apply a penalty for qualified coronavirus-related 401K distributions? I took out the $1,500 because of a qualified disaster (COVID-19) under CARES.

[DoninGA]

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@kar92 wrote:

On the link to the dates you provided it says that the efile is unavailable for this form. Does this mean I have to hand write my taxes....?

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If a form that is required to be included in your tax return cannot be e-filed, you just complete your tax return in TurboTax and in the File section of the program on Step-3 select File by Mail.  The program will provide you all the forms and schedules necessary to print your tax return for mailing.  Along with Filing Instructions with where to mail the tax return.

[RJR2]

The following was just updated on the IRS webpage this morning indicating how tax software providers can allow users to E-file, even when this new form is needed:

"Because Form 8915-E is new and impacted by recent legislation, it has not been enabled in XML for e-filing, and e-filed returns are to include an attached PDF of Form 8915-E. As an alternative to attaching a PDF of Form 8915-E, to increase e-filing and reduce paper filing, software providers may instead include with the e-filed return a general dependency statement that includes all the information requested on Form 8915-E if they have issues with attaching a PDF. Such a statement should look similar to the following.

Form 8915-E

Name xxxxxxxxxxxx xxxxxxxxxxxx

SSN xxxxxxxxx

worksheet 2 x

Disaster xxxxxxxxxxxxxxxxxxxxxxx

Disaster Date xx/xx/xxxx

Line 1 xx/xx/xxxx

Line 1a 100000

Line 1b 100000

Line 1c 100000

Line 2 xx/xx/xxxx

Line 2a 100000

Line 2b 100000

Line 2c 100000

Line 3 xx/xx/xxxx

Line 3a 100000

Line 3b 100000

Line 3c 100000

Line 4a 100000

Lin 4b 100000

Line 4c 100000

Line 5 100000

Line 6 100000

Line 7 100000

Line 8 100000

Line 9 opt-out x

Line 9 100000

Line 10 100000

Line 11 100000

Line 12 Yes/No

Line 13 100000

Line 14 100000

Line 15 100000

Line 16 100000

Line 17 x

Line 17 100000

Line 18 100000

Line 19 100000

Disaster xxxxxxxxxxxxxxxxxxxxxxx

Line 20 Yes/No

Line 21 100000

Line 22 100000

Line 23 100000

Line 24 100000

Line 25 100000"

[macuser_22]

TurboTax does not support attachments or pdf files.

[Alhre3]

I wanted to take advantage of the free filing before Feb 15th. Can i finalize my taxes with everything except the Covid form, select File by mail, and insert the hand filled paper form once available?  That way I can mail in my taxes without having to wait the 2-4 weeks for the e-version to be available as well as the 1-2 weeks TurboTax will need to update their systems.

[macuser_22]

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@Alhre3 wrote:

I wanted to take advantage of the free filing before Feb 15th. Can i finalize my taxes with everything except the Covid form, select File by mail, and insert the hand filled paper form once available?  That way I can mail in my taxes without having to wait the 2-4 weeks for the e-version to be available as well as the 1-2 weeks TurboTax will need to update their systems.

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If you file or mail without ALL necessary forms then you are knowingly filing a false tax return taht is not accurate and complete which is a violation for tax law.

[Jd1776]

• The 1099R covid relief disaster withdrawal that is supposed to avoid the 10% deduction from your withdraw. Can I just complete filing my taxes if I check that box I would like to be able to file right now and not have to wait for the update on the website, is that possible? I’ve been waiting for 2 weeks now to file and it’s still not updated. Please let me know I would like to just submit this to be done with it thank you. ( 5th year using TurboTax 😉) 

[DaveF1006]

I would not suggest doing this right now  the until update is complete.  If you do, the penalty will be assessed on this return and you won't be able to defer the taxes in a three-year period. As a result, you will need to prepare an amendment when the 8915-E is available but you may need to wait a few months until you see your refund from the amendment since amendments cannot be electronically filed. The choice is up to you.

[Jd1776]

thank you For the response, When I initially was filing my taxes I had upgraded to the deluxe I believe just so I could talk with somebody live she stated that the update might be done around the 12th is that accurate is there a timeframe on it earliest to latest?

[CatinaT1]

You are needing Form 8915-E, which the IRS has not finalized yet.  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

Please sign-up here and we will email you once the form is live.

[Jd1776]

Is this form going to be updated on the TurboTax app when It comes in? That’s the only thing I have left to do before I submit my taxes a penalty is very small because I did not take out very much therefore if it does not get updated on the app I’m considering just paying the penalty if that’s a possibility

[AmyC]

@Jd1776 Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, will be e-fileable starting 2/24.

The IRS is updating form 5329’s instructions to make it clear that COVID related exceptions cannot use 5329 and should use the new 8915-E.

[Jd1776]

OK I will hold off till the 24th thank you for the quick reply have a good weekend

[macuser_22]

Check on the 25th.  The 24th update can be anytime before midnight.

[lauralynn245]

Thank you, I will wait until Feb 25, 2021 to ensure 8915-E is included in Turbo Tax prep.

I took an early pension 401k withdrawal subject to 20% federal & 10% penalty due to covid. Does that mean, the information already loaded into Turbo Tax, is requiring that I pay that 10% penalty?

Once this update is made with the 8915-E, my refund/amount due will change since I will no longer be required to pay this 10%? Please help as I am unsure what is going on with this. Thanks!

[Indigo12]

Form 8915-E is now available. When will Turbo Tax incorporate it in their software?

htttps://www.irs.gov/pub/irs-pdf/f8915e.pdf