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Level 2
posted Jan 19, 2021 5:10:14 AM

When will the next update to TurboTax be released that includes early distributions from an IRA due to qualified disaster (including COVID-19)?

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1 Best answer
Level 15
Jan 20, 2022 4:29:56 PM


@saruff wrote:

Any updates on when this will be released for 2021 returns to recognize the second year of taxes on the distributions for those of us who chose to split it over 3 years?


Reporting the 2021 CARES act retirement plan distribution for 2020 that gave you 3 years to repay it back to the plan will be part of the 1099-R interview. If you do not have a 2021 1099-R it will ask if you have a 2021 1099-R, if you answer no it will ask if you have 1099-R income - say no and it will then ask if you had a disaster distribution from 2017-2020 - say yes. Currently it will say that the form is not ready yet - check back later.

This will be reported on a new 8915-F form that is still in the draft state at the IRS. Once the IRS finalizes that form the IRS must then write the e-file specifications (schema) for TurboTax (and all other e-file providers) to program from. That usually takes 2-3 weeks after the paper form is finalized.

The new form is expected sometime in March.

The draft forms can be viewed here:
https://www.irs.gov/pub/irs-dft/f8915f--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915f--dft.pdf

22 Replies
Level 15
Jan 19, 2021 5:23:41 AM

Are you having a problem?  It should handle that now.  

Level 2
Jan 19, 2021 5:30:21 AM

Yes, when entering the 1099-R on the "Tell us if any of these uncommon situations apply" screen, the first listed is "I took this money because of a qualified disaster (includes COVID-19)" and then the bottom of the window displays "You'll need to revisit this are.  The IRS instructions related to disaster distributions weren't ready in time for us to include them in this release.  Please revisit this area later."

 

It would be helpful to know when to expect the next release.

Level 15
Jan 19, 2021 6:25:41 AM

We don't know.  The IRS has not issued the final form 8915-E yet, and it will probably take 1-2 weeks after the IRS releases the paper form for it to be programmed, reviewed and applied to Turbotax. 

New Member
Jan 29, 2021 12:00:02 PM

is there any update on this yet?

Expert Alumni
Jan 29, 2021 12:26:36 PM

You will report this on a Form 8915-E.  The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act.  So this form cannot be included in the TurboTax program.  You will not be able to proceed until the form is available.

 

The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.

 

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

 

Additionally, the IRS will not start processing returns until February 12, so waiting for this form is not slowing down the processing of your return.

Level 2
Jan 29, 2021 3:17:10 PM

The forms availability table shows the dates for the other 8915- forms (A, B, C, D) as "02/18/2021" for the Printed column and "Unsupported" in the E-file column.  Does that mean that we will not be able to E-File a return with one of those forms?

Expert Alumni
Jan 29, 2021 3:51:32 PM

That is correct. You cannot e-file your tax return.  

 

As of today, the IRS has not yet finalized the series of Form 8915 for retirement plan distributions under the CARES act, these forms cannot be incorporated in the TurboTax program. At this point, the IRS has not corresponded with us when the forms will be finalized and available.  We estimate it will be sometime in February 2021 before the forms are ready to use. 

 

As IRS will not start to process any returns until February 12, 2021, you can choose to file without these forms and come back to amend later.  Beginning with the 2019 tax year, you can e-file amended tax returns. If you used TurboTax to prepare Form 1040-X, follow the software's instructions to e-file the amendment.

 

To see how to amend your taxes, click here: 

 

Steps to amend in TurboTax

 

How to file amendment

 

Level 15
Jan 29, 2021 4:19:11 PM

I don’t know what form 8915 -A,  B, C, or D are for. I think those are for various unusual situations that can’t be e-filed. For the coronavirus distribution, you are looking for form 8915-E. This has not been released yet and the IRS is giving absolutely no advance information that we can use. We hope it will be e-fileable but we don’t actually know that until the form is officially approved and the IRS updates it’s rules for e-filing.  

Level 1
Feb 15, 2021 7:57:55 AM

The 8915-E form is available but this area of TurboTax does not seem to reflect it which is preventing me from moving forward with my tax preparations. Here is the 8915-e form (there is a link to it on this page): About Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related and Other Qualified 2020 Disaster Distributions) | Internal Revenue Service (irs.gov)

 

Do you know when TurboTax will receive the update for this form?

 

Level 15
Feb 15, 2021 8:04:51 AM

TT is waiting for the IRS to approve TT's version (programming) of the form.

Level 1
Feb 15, 2021 8:05:50 AM

I hope the IRS doesn't take too long on that, this will affect tons of people I imagine. I suspect that everyone who took a cares act distribution is in a holding pattern and cannot submit taxes. 

Expert Alumni
Feb 15, 2021 11:02:04 AM

When you claim a qualified COVID-19 disaster during the interview for your 1099-R, TurboTax states:  

  • You will need to revisit this area.  The IRS instructions related to disaster distributions were not ready in time for us to include them in this release.  Please revisit this area later.  

This TurboTax Help allows you to sign up for notifications for when the IRS form 8915-E is operational.

 

Forms availability can be found here.

Level 1
Feb 15, 2021 11:04:04 AM

Thanks for that. I just signed up. At least this helps me from having to check back every few days. 

New Member
Feb 16, 2021 10:37:01 AM

Turbo Tax: Expected ready 2-24-2021

 

IRS Says, as of 12-Feb-2021:

 

https://www.irs.gov/forms-pubs/about-form-8915-e

 

Use Form 8915-E if you were adversely affected by a qualified 2020 disaster or impacted by the coronavirus and you received a distribution that qualifies for favorable tax treatment.

 

Current Revision

 

 

 

 

Expert Alumni
Feb 16, 2021 10:50:09 AM

This is the latest about Form 8915-E from TirboTax.

New Member
Feb 18, 2021 9:34:38 AM

The IRS had released the 8915-E form mid February 2021 and TurboTax has claimed they will be including the form in the E-File. I hope they will commit to including it as part of the update by 24-Feb-2021 as it will be a nightmare to E-File without it.

Level 1
Feb 24, 2021 12:03:01 PM

The list of forms available now has 8915-e available online tomorrow the 25th....

Level 1
Feb 24, 2021 5:07:15 PM

i just checked, its not available yet in turbo tax. maybe it will take Intuit some days to implement.

New Member
Mar 10, 2021 8:10:51 PM

I see turbo tax finally has the forms for us to fill out for the covid hardship. But when it checks for errors, i have an error, essentially "Form 1: penalties on IRA. Were still working on updates related to penalties on IRAs, retirement plans, MSA's distributions (Form 1099-R) that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when its ready."

 

It is March 10th, I believe a month ago/now since I've been waiting for turbo tax. And were only a few weeks left to actually file BEFORE the deadline. Glad I spent $100 for a program to do crap the entire filing season. Used turbo tax every year since i can remember. Aparently I'm just going to pay $100 for HR block to do it for me next year. 

New Member
Jan 20, 2022 8:01:02 AM

Any updates on when this will be released for 2021 returns to recognize the second year of taxes on the distributions for those of us who chose to split it over 3 years?

Expert Alumni
Jan 20, 2022 4:27:11 PM

The IRS has not yet finalized Form 8915-F for reporting deferred retirement distributions from 2020.

 

Once that happens, TurboTax will include it in the program as soon as possible.

 

Here's a link for the IRS Draft of Form 8915-F

 

 

Level 15
Jan 20, 2022 4:29:56 PM


@saruff wrote:

Any updates on when this will be released for 2021 returns to recognize the second year of taxes on the distributions for those of us who chose to split it over 3 years?


Reporting the 2021 CARES act retirement plan distribution for 2020 that gave you 3 years to repay it back to the plan will be part of the 1099-R interview. If you do not have a 2021 1099-R it will ask if you have a 2021 1099-R, if you answer no it will ask if you have 1099-R income - say no and it will then ask if you had a disaster distribution from 2017-2020 - say yes. Currently it will say that the form is not ready yet - check back later.

This will be reported on a new 8915-F form that is still in the draft state at the IRS. Once the IRS finalizes that form the IRS must then write the e-file specifications (schema) for TurboTax (and all other e-file providers) to program from. That usually takes 2-3 weeks after the paper form is finalized.

The new form is expected sometime in March.

The draft forms can be viewed here:
https://www.irs.gov/pub/irs-dft/f8915f--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915f--dft.pdf