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khudso00
Level 1

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

 
10 Replies
DanaB27
Employee Tax Expert

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

Please be aware that Form 8915-E, that reports the COVID related 401k distributions, isn't ready yet. 

 

The 8915-E Form is projected to be e-fileable starting 02/24/2020. Please sign up here to get notified when Form 8915-E is ready.

 

 

Once the Form 8915-E 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.

 

 

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khudso00
Level 1

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

It's the 24th and there is still no update.

CatinaT1
Employee Tax Expert

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

The date was changed to the 25th.

 

On February 11th, the IRS finalized the Form 8915-E for retirement plan distributions under the CARES act.  The form will be available on TurboTax for efile approximately February 25th. 

  

 Please sign-up here and we will email you once the form is live.

 

In the mean time, you can make sure you are eligible for the provision here - Coronavirus Relief

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drewsak
Level 1

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

What is frustrating is you cant email or talk to anyone at TurboTax about this....this will be the last year I use TurboTax. Hopefully this form will be loaded on TurboTax tomorrow so I can hit the file button...only thing I am waiting on.

cldunn87
Level 2

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

When is this supposed to be supported for state returns? I can't even file my federal return because Turbo Tax is still working on updates for at least the Wisconsin return. Information is very difficult to find in these forums. 

DaveF1006
Employee Tax Expert

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

Once the federal updates are implemented, the states will update as well. 

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cldunn87
Level 2

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

This was supposed to be completed. There are no errors registering with the federal return, but the state forms have multiple errors. Time to switch to a different company to file taxes is all I'm learning this year, this is infuriating. 

jamied44
Returning Member

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

There is a number on the website you can call or use the Live option to connect to an agent

Irene2805
Expert Alumni

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

Form 8915-E is currently available in both the CD/Download and online versions of TurboTax. 

 

Please make sure your program is up-to-date.  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:

 

  1. Click on the Online link in the black bar at the top of the page.
  2. Click on Check for Updates.
  3. 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."

 

Once your program is updated, go back through the 1099-R portion of the program and proceed through the screens following the 1099-R entry screen. 

  • You will see a series of questions to see if you are exempt from the additional taxes on early withdrawals [Screenshot #1, below]; and 
  • You will  be asked if you want to pay all the tax this year of just 1/3, with the rest reported over the next two years. [Screenshot #2]  Check the box if want to pay tax on the entire retirement distribution in 2020.

Screenshot #1

 

Screenshot #2

 

 

@cldunn87

 

cldunn87
Level 2

Why do I get an error saying I need to revisit my 1099-R received from a Covid related 401k distribution?

This is not a useful response! This is regarding State filing errors after reviewing the federal return and completing that section appropriately. 

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