When I tried to go through the steps it removes the option entirely after giving a message about it "not being ready" or something. I think this will be like last year where it will take them weeks to get the proper forms loaded to accommodate the 2nd year of the 3 year split. I am waiting for an answer as well. There isn't anything that I can find in support that specifies when or how so hopefully someone will reply here to tell us all.
To record one third of a distribution you were allowed to take without penalty due to COVID, you can use the steps below.
Form 8915-F is used to report a disaster-related retirement distribution, and any repayments of those funds. It also allows you to spread the taxable portion of the distribution over three years, if needed and report prior year distribution amounts which are to be taxed in 2021.
We'll complete and include Form 8915-F with your return if you qualify. Just enter your Form 1099-R and answer a few questions to determine your eligibility.
NOTE: This Form 8915-F is still in IRS draft form. Continue to check the federal forms availability for a date of release.
I did check that and it seems if it's not going to let me go through with that until they get the update for that sometime in the near future. It says to check back later. Unless I am missing something.
No, you are not missing anything. As indicated, the form is not ready yet so we must give the IRS time to put this new form into place before it can be filed.
I would like some clarification on the steps for reporting the taxable amount for the second year when electing to spread it over three years. Am I filling out form 8915 again for 2021 even though the distribution was only in 2020? I would assume I will not be receiving a 1099 R for 2021 since there was no distribution for that year. It does not seem clear where I report the the taxable amount for the second year.
@JoeDown you are correct! It is not clear. As stated previously the IRS has not yet issued guidance on how we are going to enter the amount that was pushed off to this year. We will all have to wait until they do in order to answer your question!
@JoeDown wrote:
I would like some clarification on the steps for reporting the taxable amount for the second year when electing to spread it over three years. Am I filling out form 8915 again for 2021 even though the distribution was only in 2020? I would assume I will not be receiving a 1099 R for 2021 since there was no distribution for that year. It does not seem clear where I report the the taxable amount for the second year.
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.
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