We're still working on updates related to Retirement distributions that qualify for disaster or covid relief. WHEN CAN I FILE!?

Please be aware that the federal form 8915-E is available for COVID related distributions and ready in TurboTax. Please make sure you updated the software. Please see How do I update my TurboTax CD/Download software program?.

 

1. Open your return
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
4. Continue until "Was this withdrawal due to COVID-19 or a Qualified Disaster Distribution? " screen
5. Make the appropriate selection and continue through the questions. 

 

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.

 

If this does not help then please comment what code is in box 7 on your 1099-R. Box 1 and box 2?

I cannot file my state return for New York because the e-form is still not available. Box 7 is marked "2". Box 1 and 2 are my withdrawal amount.

I'm having the same problem here in NY. The above info doesn't help us. Is there a solution for us here in NY? 

TurboTax is working hard to incorporate this new form into all the states in TurboTax. Please see Why am I getting a “Check this Entry” message blocking me from filing my State return? for the latest updates on the issue.

 

Please be aware, New York State follows the federal treatment in regards to the COVID retirement distribution. The income will be included in New York adjusted gross income in the same year it is included in federal adjusted gross income. (New York State tax implications of the federal CARES Act)