Why is my COVID disaster distribution still being counted as income 4 years later? I paid the taxes on full balance with the last payment in 2022 tax year.

[CaitlynnJJ01]

I took a disaster distribution from my 401(k) in 2020 due to COVID.  I paid taxes on it in the 3 tax years following - 2020, 2021, and 2022.  This year, 2023, it is still adding a third of the distribution amount as income even though the three years are done.  How do I correct this?

[DoninGA · Accepted solution]

The Form 8915-F Worksheet and the Form 8915-F along with the Form 1099-R were transferred from the 2022 tax return and need to be deleted.

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

[CaitlynnJJ01]

Thank you so much!  I was about to start sobbing.  

[CJB_4]

Caitlynn, I'm having the same problem, but those forms don't delete when I follow these steps. When you successfully deleted them, did they actually disappear from the list? And did you have all three of those forms to begin? I have only the two latter forms, but I also have a "carryover worksheet" listed.

[CJB_4]

I have Form 8915F-T but it won't delete, even though it says it has been deleted. I also have deleted "1099-R summary," but that doesn't disappear either. Any suggestions?

[CJB_4 · Accepted solution]

Never mind ... I figured it out. There was a "2020 disaster relief" form that I had to also delete, and it removed the Form 8915F-T when I did.

[CaitlynnJJ01]

I just saw this now.  I had the same issue.  First, nothing deleted, but then I deleted that file and all subsequent files went away.  

[Cormachsmith]

I had the same question. So, after 2.5 hours on the phone with a Tax Pro and him on with tech support, it turns out that Turbo Tax has not yet been properly setup to deal with Covid distributions.

In the future, maybe a few weeks, there will be an additional question added after it asks if you had a Covid related withdrawal in 2020. That additional question should ask something to the effect of, have you already claimed all that income and paid all the taxes? If you say you have paid all the taxes, then it will remove that amount from your income and your taxes will be correct.

The guy could not give me a definite date the fix would be in place. He said his best guess is maybe mid February. This year at least the IRS had the forms published on 1/3/24. We just have to wait for Turbo Tax to incorporate it.

[Cormachsmith]

Sorry, I just saw where others had figured out how to delete the forms correctly. The tax pro I talked to was not able to figure that out. Hahaha!