Because that form is not available yet.
See below for a link to sign up for an email when the form is ready.
This form is necessary to report COVID related distributions from IRA's and other retirement plans to report the distribution, pay it back over 3 years or spread the tax over 3 years.
A COVID-19 related distribution is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS.
The IRS has announced that the 8915-E for will NOT be e-fileable, but has offered two alternatives to allow e-file with attachments. Whether TurboTax will implement either of these is unknown at this time.
The draft paper form 8915-E is here:
https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf
Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324
Did you say the form 8915E may bot be efiled? If this true why can't i just efile now cause I'm not being penalized at all my 1099R code is 2 so it didn't penalize me
@Mommyof3 wrote:
Did you say the form 8915E may bot be efiled? If this true why can't i just efile now cause I'm not being penalized at all my 1099R code is 2 so it didn't penalize me
The code on the 1099-R is not the determining factor, it is whether the distribution itself was only allowed because of the CARES act. If you could have taken the distribution anyway then the 1099-R is all you need to file. Only if you need the 8915-E form to claim a COVID related distribution will you need it.
Could i just divide my taxable income by 3 and manually enter that in BOX 2a and use the same 1099-R for the next 3 years?
For example, My taxable income is $5025 in BOX 2a, if i input $1675 for the next 3 years will i be ok?
@Nate93 wrote:
Could i just divide my taxable income by 3 and manually enter that in BOX 2a and use the same 1099-R for the next 3 years?
For example, My taxable income is $5025 in BOX 2a, if i input $1675 for the next 3 years will i be ok?
No. That is done on the 8915-E just for that purpose.
The TurboTax 8915-E should be available on Feb. 24.
See below for a link to sign up for an email when the form is ready.
This form is necessary to report COVID related distributions from IRA's and other retirement plans to report the distribution, pay it back over 3 years or spread the tax over 3 years.
A COVID-19 related distribution is reported on a new 8915-E form.
See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324
Hi,
So once the e-file is ready on 2/24, Turbo Tax will have a CARES Act checkbox (or yes/no question) in the IRA section, I assume? Something to indicate that the distribution is COVID related and Form 8915-e will be used? Currently nothing like that there, so just wanted to confirm.
Thanks!
@quickquestions wrote:
Hi,
So once the e-file is ready on 2/24, Turbo Tax will have a CARES Act checkbox (or yes/no question) in the IRA section, I assume? Something to indicate that the distribution is COVID related and Form 8915-e will be used? Currently nothing like that there, so just wanted to confirm.
Thanks!
Like the rest of us - you will have to wait ans see how TurboTax implements this. (The online version already has a (was this a disaster related distribution button that only says to wait for the forms).
Ahh, thanks. The download version does not have that yet. At least not that I see.
Any update on this? Has anyone had any success completing this process? I tried today but nothing changed prompting me to reduce the taxable income.
The online version was updated today but there appears to be a problem with the desktop update so it has been delayed to tomorrow.
The latest update is that form 8915-E will be available tomorrow, 02/26. If you haven't signed up to be notified because of the update, please do it here in case if the date gets extended again.
I tried the Online version
A) it doesn't appear to spread the tax over three years.
B) it comes up with a taxable amount after a partial rollover of the distribution that I don't understand.
C) it gives contradictory verification messages about the 1099-R taxable amount box 2a
@fanfare wrote:
I tried the Online version
A) it doesn't appear to spread the tax over three years.
B) it comes up with a taxable amount after a partial rollover of the distribution that I don't understand.
C) it gives contradictory verification messages about the 1099-R taxable amount box 2a
I have not really played with the online version much other than to verify that a code B will not get the necessary questions. I am waiting for the desktop update for testing.
We have two 1099-r and the Covid question comes up for my husbands 401k but does not come up for my Roth 403b. I’m not understanding why? Any help is appreciated.
@Alovera18 wrote:
We have two 1099-r and the Covid question comes up for my husbands 401k but does not come up for my Roth 403b. I’m not understanding why? Any help is appreciated.
As I said above, there is a bug in the online version that is ignoring a code B on box 7 on a 1099-R.
I'm having the same issue. My husband took a distribution from his 401k, but it came from both a pre-tax account and a Roth IRA. He received two 1099-R, and like you mention, one has a "B" code on box 7. Any updates on when this might get solved?
I'm having the exact same issue right now. Just spent 2 hours on the phone with a tax representative through turbotax live that didn't know how to fix the issue. I'm now waiting for a callback (~30 mins) from the product support team. Will update. It seems that they haven't built the flow that recognizes Roth early distributions (code B1) as being eligible for the COVID relief form (8915-E). Specifically, it seems that code B1 withdrawals that relate to COVID-19 should be reported in box 3a on the 8915E, but the platform currently doesn't have that flow. Will update.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
@taxwhiz1 wrote:
I'm having the exact same issue right now. Just spent 2 hours on the phone with a tax representative through turbotax live that didn't know how to fix the issue. I'm now waiting for a callback (~30 mins) from the product support team. Will update. It seems that they haven't built the flow that recognizes Roth early distributions (code B1) as being eligible for the COVID relief form (8915-E). Specifically, it seems that code B1 withdrawals that relate to COVID-19 should be reported in box 3a on the 8915E, but the platform currently doesn't have that flow. Will update.
There is currently a bug in the online versions of TurboTax (desktop works fine) that ignores the COVID questions for a 1099-R with a code "B" on box 7. This has been reported.
Thanks for the information.
Do you have any sense of when this will be fixed? The callback just hung up on me after ringing once.
@taxwhiz1 wrote:
Thanks for the information.
Do you have any sense of when this will be fixed? The callback just hung up on me after ringing once.
No, Probably several weeks.
User dmertz posted the following workaround for the Online version 1099-R code B bug.
In online TurboTax a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only code 1, 2 or 7 (If box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.
Do you think that workaround will put the Roth disbursement information in the correct box on form 8915-E, though? It seems that without the B, the platform will just recognize the disbursement as one from a non-Roth account (the B denotes that it's from a Roth account). I believe disbursements from a Roth account are supposed to go on a separate line on the 8915-E form (3 instead of 1).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
@taxwhiz1 wrote:
Do you think that workaround will put the Roth disbursement information in the correct box on form 8915-E, though? It seems that without the B, the platform will just recognize the disbursement as one from a non-Roth account (the B denotes that it's from a Roth account). I believe disbursements from a Roth account are supposed to go on a separate line on the 8915-E form (3 instead of 1).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
A code "B" is a designated Roth in a separate account in a 401(k), 403(b) or governmental 457(b) plan and is NOT an Roth IRA - it goes on line 1.