topic Re: form 8915-E in Retirement tax questions

form 8915-E

tikataxslayer91 — Thu, 25 Feb 2021 19:39:26 GMT

When entering my 1099, I am not asked questions related to COVID even though i checked that I took the money out due to covid related issues. Then when I get to the end the message reads "

We Were Unable to Lower Your Tax Bill"

Since you didn't use the money for a special situation that qualifies, we couldn't help you reduce the amount of extra tax you have to pay.

Based on your entries so far, your extra tax bill is $___, or 10% (25% for a Simple IRA) of the money you took out. This number may change as you add more info to your return.

I'm using Turbotax online. I deleted the 1099 and reentered it but i'm not being asked the covid related questions

Re: form 8915-E

SamS1 — Thu, 25 Feb 2021 20:41:51 GMT

I would delete the 1099R and re-enter. Make sure the you enter the 1099R manually and do not import. Is this a Roth distribution? Review box 7 on your 1099R. The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option if the distribution is pushing you into a higher marginal tax bracket. You may end up paying less tax if you spread the distribution over the 3 years. After you have logged in and are in your return in TurboTax Online:

Go to Search at the top of the screen.
Enter Form 1099-R in the search box.
You will see a Jump To function that will take you to the 1099-R input screens.
There delete the 1099R in question by clicking on the trash can next to the form
Then add a new 1099R and manually enter your 1099R.

At the financial services screens, click "Change how I enter my form" then "Type it myself"

At the Uncommon Situations screen be sure to check the Covid distribution box.

Re: form 8915-E

tikataxslayer91 — Thu, 25 Feb 2021 20:46:19 GMT

I did delete and re enter. I checked the box "I took the money out for a qualified disaster" but after that i am not being asked the 8915-E based questions and is still being penalized. and not asking to spread the amount over 3 years

Re: form 8915-E

SamS1 — Thu, 25 Feb 2021 20:56:51 GMT

Can you clarify what codes are in box 7? Are there letters or numbers or a combination? Is this an IRA or 401K distribution?

Re: form 8915-E

tikataxslayer91 — Thu, 25 Feb 2021 21:07:50 GMT

its a 401K distribution and 1 is the code

Re: form 8915-E

SamS1 — Thu, 25 Feb 2021 21:52:11 GMT

That should qualify for the exemption. I might have you log out and clear your browser cache and cookies then log back in and give it another try. Make sure and answer the questions carefully. Cookies are small files that temporarily store data on your computer. We use them to personalize your experience so you see information you already entered and not items that are irrelevant or repetitive. On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser. Each browser has a slightly different method for deleting cookies. Choose the browser you're using:

After you have re-entered the 1099R, you can review your return. You can review your 1040 in the following steps:

While in your TurboTax account, select Tax Tools in the left margin
Select Tools
Select View a Tax Summary
In the left margin, select Preview my 1040

Re: form 8915-E

rinamorgan2 — Thu, 25 Feb 2021 23:21:36 GMT

I have a 1099r that has code B1 in box 7. It is charging me a penalty even though it was a covid distribution. It doesn't have the option for me to say it was a covid distribution?

Re: form 8915-E

macuser_22 — Thu, 25 Feb 2021 23:33:30 GMT

That will require the new 8915-E form that should be available sometime tomorrow.