The TurboTax software will include all the IRS procedures for reporting a CARES act withdrawal and the Form 8915-E once the IRS has approved instructions and the 2020 forms.
The TurboTax desktop CD/Download editions, to include Premier, have all the same forms, schedules and worksheets. Help and guidance is more extensive in the higher priced editions such as Premier.
The TurboTax online editions have not yet been made available for tax year 2020 so it is not yet known which editions will support a CARES withdrawal and the Form 8915-E, although it is assumed that the online Premier edition will support both.
@GRogers1 wrote:
Hi, wondering if Turbo Tax is planning to handle both CARES 401k withdrawals and (partial) repayments (form 8915‐E) in the Premier version.
Because e-fileing does not use paper forms - it transmits encrypted data in the exact format specified by the IRS/State or the IRS/State could not read it. The IRS/State first finalizes the paper form, then writes the e-file specifications and gives that to e-file providers to develop their software. Then the IRS/State must test with the e-file providers and approve the electronic forms before they can be released so that both ends are compatible. That process usually takes several weeks after the paper version has been released.
Currently the 8915-E paper form is still in the draft mode at the IRS so it might take a while before it becomes available in TurboTax. Often when new forms are issued they do not get incorporated until Feb-March due to IRS delays.
Although TurboTax may allow you to e-filed some returns as early as 1/7/21 (IF the forms in your return are ready for filing … see info below) they are NOT actually sent to the IRS. TurboTax stores those early filed returns in a holding “POOL” until the IRS opens for business and “drains the pool” for processing ... only then will you get an e-mail telling you if the return was accepted or rejected by the IRS.
Only the simplest returns can be transmitted to TurboTax early. Some forms will not be finalized until Jan 25 and some later than that.
https://ttlc.intuit.com/questions/1908854-forms-availability-table-for-turbotax-federal-products-exc...
Why does TurboTax allow early filing? Because their competitors do - It is a marketing ploy to capture market share.
Filing early with TurboTax before the IRS opens is a really BAD IDEA for many reasons...
1) If you discover something that is wrong on your return, receive a W-2 that is different, receive some other tax document that was not on the return that you filed then there is NOTHING that you can do about it other than wait to see if the IRS accepts or rejects the return after they open. If rejected you can correct and file again, but if accepted then the only remedy is to amend which can take 4 months to process.
2) You must remember to check back after the IRS opens (or check for an e-mail) to confirm that the IRS has accepted or rejected the return. If rejected, then it was never filed at all and must be corrected and re-filed. Every year many taxpayers that file early, forget to check back and only discover months later that they never actually filed because if was rejected by the IRS but they had forgotten about checking back after filing with TurboTax.
3) While the IRS does conduct some pre-opening tests and does accept some returns early (ONLY for TESTING purposes), they will not actually process those until after the official opening date. There is a reason to test and that is to discover any problems with it's systems. A couple of years ago a test went bad and several thousand "test" returns were lost. The IRS was able to recover those but it delayed refunds for some by months.
There is no real advantage to file before the IRS opens but there are several disadvantages to do so.
When will my forms be ready?
Historically, IRS tax forms start becoming available in January, with a few stragglers (most notably Form 1040X) getting finalized in February.
State tax forms can become available for filing any time between December and late February, depending on the state and the tax form.
For specific forms and dates, refer to the Forms Availability Table for your TurboTax product, see the related information below.
Can I Still Work On My Return Before My Forms are Ready?
Yes, according to the following:
Federal Taxes
You can still work on your return and finish most of it. Once your forms become available, we’ll create the forms and include all of your info.
You’ll only be able to e-file or print your return once the forms are available.
While you’re working on your return, we’ll ask if you want to receive email updates when your forms become available.
State Taxes
If your forms aren’t available, you’ll get a message asking you to return once they become available.
While you’re working on your return, you’ll have a chance to let us know you want to receive email updates when your forms become available.
Related Information:
IRS Forms Availability Table for TurboTax Individual (Personal) Tax Products
· State Forms Availability Table for TurboTax Individual (Personal) Tax Products
· IRS Forms Availability Table for TurboTax Business
Thank you for the quick reply. Is it reasonable to assume partial repayments will also be handled (in addition to withdrawals)? You can repay within 3 years and avoid the taxes you would otherwise pay on the withdrawal(s).
A Coronavirus-Related Distribution is a type of disaster distribution, reportable on Form 8915-E. Online TurboTax Deluxe or higher was needed to file Forms 8915-A through 8915-D for other types of disaster distributions, so one can anticipate that the same will be true of TurboTax's support for Form 8915-E.
If you qualify AND if you wait until mid January THEN you can use one of the IRS FREE FILE options to file a fed & state return for free ... but you must be patient. https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
IRS Free File is closed for the 2020 tax season. Check back in January for Filing Season 2021 opening details.
For Filing Season 2021, you must make $72,000 or below to use IRS Free File partner offers.
@marisa2031 wrote:
when will the 8915-e be available on turbo tax
The IRS has not informed anyone yet when the form 8915-E will be finalized.
Will we be alerted in some way when the 8915-E update is sent or updated in the software instead of us having to go back in every time to see if it is there?
Per the IRS website, both the Instructions and Form for Form 8915-E currently do not have an updated release date.
The draft form was released 11/9/2020. Please see the Draft Instructions and Form below.
Form Draft Instructions: https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
Draft Form 8915: https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
Check a couple of times a week to see if that is updated ... since the IRS will not start processing returns until at least 2/12 we will have to be patient. If the form is listed in the missing list in the Federal review then the option to get a email may be available but I highly doubt it will show yet.
No. Currently, there is no way to be notified, but to find the most up to date information on our forms availability please use this link: IRS Form Availability Form 8915-E will be added to the list when more information is available.
It's now February 10, 2021, has there been an update to form 8915-E and the e-filing using Turbo Tax or are we still in a holding pattern?
Last posted it is expected sometime about the 22nd of this month.
Unfortunately, the IRS has not finalized and released Form 8915-E. Additionally, they have not provided a tentative release date as of yet.
Visit the following link to sign up to be notified when Form 8915-Em becomes available:
For more information about Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments, please visit: https://ttlc.intuit.com/community/retirement-tax-credits-and-deductions/help/what-is-form-8915-e-qualified-2020-disaster-retirement-plan-distributions-and-repayments/00/1879654
Unfortunately, the IRS has not finalized and released Form 8915-E. Additionally, they have not provided a tentative release date as of yet.
Please visit the following link to sign up to be notified when Form 8915-Em becomes available:
For more information about Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments, please visit: https://ttlc.intuit.com/community/retirement-tax-credits-and-deductions/help/what-is-form-8915-e-qualified-2020-disaster-retirement-plan-distributions-and-repayments/00/1879654
What is so frightening about this is that there is NO warning in TT that you may be overpaying tax because of this. I knew about this deduction and I was shocked after completing my taxes to find out that I almost overpaid my taxes by $10000 because I assumed that TT was taking care of this. I understand it's not Intuit's fault that there is a delay but they could at least warn people with large IRA withdrawals not to file yet.
TurboTax has not way of knowing if your distribution was COVID related or not. You must tell it that it is and then TurboTax says the from is not ready yet.
In which version? That's my whole point! There was no such question asked for me.
The retirement section is not complete yet. There is an update pending.
The online version 1099-R section asks if this was disaster related and the tells you to wait.
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
In the Windows Desktop Version of H&B there is no question regarding whether it was disaster related. The only way to enter this information is, once you know it's there (from researching here and other places), is to go into "Forms" view and check the box on the form. There is currently no question asked regarding whether it was disaster related. It's lucky I did a thorough check of the return otherwise I could have submitted my return assuming that TT had automatically taken care of the $100K deduction (as I did not realize until now that you actually had to state that the withdrawal was disaster related rather than the IRS assuming that it was.
Anyway glad I noticed and glad there is a form to sign up for the update.
I was filling out our taxes today with Turbotax and when I entered our cares act 401K withdrawals it gave no place to divide the withdrawals by 3 years as specified in the CARES ACT. Where can I find this area in the online version?
Its not quite ready in TurboTax but will be soon. Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, will be e-fileable starting 2/25. The IRS is updating form 5329’s instructions to make it clear that COVID related exceptions cannot use 5329 and should use the new 8915-E. Click here to add your name in the email list to be notified when ready.