When will form 8915-E be available to report Coronavirus-Related Distributions from IRAs exempt from 10% penalty and to elect to report as income over 3 years?

[DanaB27]

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, be aware that the IRS currently won't start processing returns until February 12, 2021.

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.

[Cubs]

I'll check back later after the IRS publishes the form

[Dee59]

Your solution does not work in Desktop (Premier). This section does not appear:

"I took out this money because of a qualified disaster (includes COVID-19)"

It is simply not there.

[JoannaB2]

Yes, The IRS is still finalizing federal tax forms, including form 8915.  The form 8915  (Qualified 2016 Disaster Retirement Plan Distribution and Repayment) must be used if you're adversely affected by a 2016 disaster and received a distribution that qualifies for a favorable tax treatment.  

See, federal individual forms availability.

[Mommyof3]

Ok I am finished with my taxes my question is my 1099-r box 7 said code 2 for my early distribution. I have another one 1099-r from early Jan for hardship which box 7 is code 1 that went through fine and so did the first one. Only reason im getting a message about the for 8915-E is because im selecting the covid 9 reason verses any other reason for that one 1099-r that has the code 2 in box 7. I havent efiled yet cause im worried i will get rejected or delayed for filing. I just need little guidance on this because im not getting a penalty due to the hardship the one that has code  1 in box 7. just the 1099r that has the code 2 in box 7 went through accepted as no penalty to me. can i just go ahead and efile or am i missing something 

[DanaB27]

No, you should wait to e-file since the 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:

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.

 @Mommyof3 

[KMills22]

There were some instructions updated today on irs.gov. Will those new instructions allow us to e-file on the 12th? 

[Mommyof3]

I sure hope so I have been on idle for a week.. lol and my 1099 

R coded me 2 so did not get a penalty but just want to be safe and wait

[JamesG1]

As of this date, IRS form 8915-E is not available.  There is not a date for completion for electronic filing purposes.

Forms availability can be found here and will report a tentative date when the form will be available in TurboTax.

[macuser_22]

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@KMills22 wrote:

There were some instructions updated today on irs.gov. Will those new instructions allow us to e-file on the 12th? 

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No.  As of now, that form does not exist yet - still in the draft state.  After the form becomes available allow at least 2-4 weeks for TurboTax to implement it.  (Software development and testing does not happen overnight).

[Mommyof3]

So even though my 1099R box 7 has the code 2 that exempts me from the penalty I still need the form 8915-E

[macuser_22]

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@Mommyof3 wrote:

So even though my 1099R box 7 has the code 2 that exempts me from the penalty I still need the form 8915-E

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Not necessary.     Only if it was a COVID related distribution and you want to pay the tax over a 3 year period or return the money to the account within 3 years.

[KMills22]

So if it is COVID related, but you don't want to spread it over 3 years, you don't need the form? Or because it's COVID you have to have the form no matter what? 

[macuser_22]

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@KMills22 wrote:

So if it is COVID related, but you don't want to spread it over 3 years, you don't need the form? Or because it's COVID you have to have the form no matter what? 

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Again it depends.    If an retirement account where you can take a distribution anytime want then it is the same as any other distribution reguardless of your reason for taking it - no form is required.    But if an account (like a 401(k) that does not allow distributions prior to requirement and the only reason you could even have the distribution then the 8915-E for is necessary to show that you qualified for a COVID related distribution.