Ref 1099-r tsp withdrawal, federal tax withheld. I want to spread it out over 3 years, it keeps saying to revisit latter. Anyone know what's going on?

[john012]

Tried deleting and reentering 1099-r, but same message keeps coming up. Apparently turbo tax hasn't release or doesn't have the info on this yet in the current version.

Anyone know if this version of turbo tax will be updated by feb12? Or is this something that you will have to file on next years taxes? Makes a big difference if I can spread it out over three years.

[DanaB27]

It will be entered on this years taxes, but Form 8915 -E, that reports the Coronavirus-related relief measures for retirement plan distributions, is not yet finalized by the IRS. TurboTax will update this section after the IRS releases the final version of Form 8915-E and then you can finish your distribution information.

Please follow these steps to enter your 1099-R:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and you should see the “Your 1099-R Entries” screen
4. Click "edit" and continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)" (TurboTax will walk you through questions once this section is ready)

Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.

You qualify if:

• You, your spouse, or your dependent are diagnosed with COVID-19
• You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19
• You’re unable to work due to child care closure or hour reduction because of Covid-19
• You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

[john012]

Thank you for the info it was very helpful and answer my question.

[Andre]

Thank you so much Dana! 

1)  Do you think if we want to spread out the taxes over the next 3 years, we will have to file for 8915-E each year for the next 3 years?  (Including this year)

2) Will form 8915-E  be used when accounting for people who took their RMD in June of 2020 and returned it in July of 2020?  Or is there a different process?

3) I saw on another website that the 8915-E form was going be be available on 2/18/2021, does that sound correct to you?

[SamS1]

Yes, you will need to file the 8915-E each year if you spread the distribution over 3 years.  No, the 8915-E is not needed for RMD rollover back to their IRA account.  There are processes in TurboTax to help you through those steps.  Just remember at the RMD screens when ask if you took your RMD to indicate None and it will take you through the additional steps for the roll back to your IRA.

Click here to sign up to be emailed an update when the 8915-E is ready in TurboTax.

[Ktweite]

How do I spread it over the 3 years? Or is this something that will show up once the form is updated? 

Right now I put the gross distribution as the full  amount I took out of the tsp because of covid and then below by taxable amount I put the amount I want to report this year ( I split the gross distribution 3 ways) is this the way to do it?

thank you

[DoninGA]

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@Ktweite wrote:

How do I spread it over the 3 years? Or is this something that will show up once the form is updated? 

Right now I put the gross distribution as the full  amount I took out of the tsp because of covid and then below by taxable amount I put the amount I want to report this year ( I split the gross distribution 3 ways) is this the way to do it?

thank you

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The IRS has a new Form 8915-E for COVID-19 related retirement account withdrawals.  This form has not been finalized by the IRS for filing with a 2020 federal tax return.  The IRS has not announced when this form will be available.  Once available it will be included in the TurboTax software.

We estimate the form may be available sometime in February.