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 sign-up here and TurboTax will email you once the form is live.
Please follow these steps to enter your 1099-R:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R” and you should see the “Your 1099-R Entries” screen
- Click "edit" and continue until "Tell us if any of these uncommon situations apply" screen
- 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.
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Today is February 25!
TurboTax Online has been updated with Form 8915-E, to remove the early withdrawal penalty for early retirement plan distributions and other relief provisions because of COVID-19. TurboTax CD/Download should be updated this evening.
If you are using TurboTax Online, or when you get your updates in CD/Download, go back to your federal return and go through the screens for your 1099-R. The program has been updated for the provisions of Form 8915-E
In TurboTax CD/Download, you will be prompted to download any updates available when you open the program. You can also update the program while you have it open by following these steps:
- Click on the Online link in the black bar at the top of the page.
- Click on Check for Updates.
- TurboTax will download and install any updates available. If there aren't any updates, you will receive the message "Your software is up to date."
Turbo tax for federal 8915-E is updated. I am unable to find any Updates for specified state (Wisconsin) when it will be in Turbotax. Anyone know when these will be available ?
Try deleing the 1099R and re-entering. After you enter the 1099R, try doing the following:
- Go to Forms mode by selecting "Forms" in the upper right hand portion of the screen
- Select the 1099R you just entered from the left hand column of forms
- Scroll down the 1099R until you find the "Qualified Distribution Worksheet" section. There you should seen the Coronavirus distribution question
- Review and when finished, return to Step by Step mode in the right had corner.
The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option if the distribution is pushing you into a higher marginal tax bracket. You may end up paying less tax if you spread the distribution over the 3 years
You might also try clearing your cache and cookies before re-entering the 1099R. Cookies are small files that temporarily store data on your computer. We use them to personalize your experience so you see information you already entered and not items that are irrelevant or repetitive. On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser.
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