Will Turbo Tax handle both CARES 401k withdrawal and repayment (form 8915‐E)

[Critter-3]

Last posted it is expected sometime about the 22nd of this month. 

[kzigmant]

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:

https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r...

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-qua...

[kzigmant]

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:

https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r...

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-qua...

[BarryGraham]

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.

[macuser_22]

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.

[BarryGraham]

In which version? That's my whole point! There was no such question asked for me.

[macuser_22]

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...

[BarryGraham]

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.

[CYBERBO60]

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? 

[SamS1]

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.

[PSLIWKA]

I was wondering when Turbo tax will be updating these forms.  The initial question was asked in November 2020.  Please advise.

THank you 

[DoninGA]

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@PSLIWKA wrote:

I was wondering when Turbo tax will be updating these forms.  The initial question was asked in November 2020.  Please advise.

THank you 

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Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments is scheduled to be available in TurboTax on 02/25/2021

[psyadam]

I took an IRA withdrawal early 2020 and returned it in the Summer when that was allowed. Entered this in Turbotax Home & Business, gave all the COVID related information and it says that I don't have to pay a penalty but asks me if I want to pay tax on it now or in thirds.  

When will TurboTax be updated as this is an error, shouldn't have to pay any tax, anytime on this (would have been an RMD if not for COVID return/waiver but I was told to uncheck that box for TT).

Thanks,

Adam

[PattiF]

Please do not enter the returned amount as a contribution under the Deduction and Credit section. Please delete these entries:

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Click on “Deduction and Credits” tab on top
4. Click "edit" next to "Traditional and Roth IRA Contributions"
5. Remove the checkmark next to "Traditional IRA"
6. Select "yes" to "Remove Traditional IRA Contributions?"

Please follow these steps to enter your 1099-R and the return of RMD:

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”
4. Continue until "How much was a RMD?" and select "none"
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

 RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD then you must delete and reenter the 1099-R form. Only editing the 1099-R form and changing your answer to the RMD question will not work.