Coronavirus 401k distribution missing on 2022 Iowa state return

[m319]

I took a $30,000 coronavirus 401k distribution in 2020.

For 2020, Turbotax had me pay taxes on 1/3 ($10,000) to federal and state (Iowa)

For 2021, Turbotax had me pay taxes on 1/3 ($10,000) to federal and state (Iowa)

When filling out my 2022 return, Turbotax correctly inputs the remaining $10,000 income on my federal form, 

but it DOES NOT auto-input the $10,000 income onto my Iowa return. 

In previous years, the distribution would show on Iowa 1040 line 9- "Taxable pensions and annuities"., but on my current return line 9 is blank. 

Can someone update the software and correct this issue?

Thanks!

Mike

 

[Cynthiad66]

Mike please try this!  Let's clear your history, cookies and cache', reboot then check the Iowa return again.  The software is constantly being updated but try this to see if it helps please.

How to Clear Cookies, History and Cache'

If that does not work,  another option is to delete "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and then go back to the retirement section and reenter the information:

1. Open or continue your return in TurboTax.
2. In the left menu, select "Tax Tools" and then "Tools".
3. In the pop-up window Tool Center, select "Delete a form".
4. Select "Delete" next to "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and follow the instructions.
5. Click on the "Search" on the top and type “1099-R”  
6. Click on “Jump to 1099-R” 
7. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
8. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
9. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
10. Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.

Please let me know if this worked for you.

[m319]

Hi Cynthiad66!

I am using the download Windows desktop version of TurboTax Premier, so I am unable to clear cache, etc. 

I had the software check for updates but none were available. 

I completed all of your steps 1-10. 

My state return is still NOT showing the $10,000 retirement distribution income. 

[Cynthiad66]

Mike, since you have download version, you can actually go to forms mode and enter the information on the state form that is missing.

Or,  our Expert DanaB27, has developed two Work Around Options you can try Below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
6. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
7. Uncheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and click continue
8. On the "Which disaster affected you in 2020?" screen I selected the blank entry and click "back" 
9. Then recheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and continue.

Another option is to delete "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and then go back to the retirement section and reenter the information:

1. Open or continue your return in TurboTax.
2. In the left menu, select "Tax Tools" and then "Tools".
3. In the pop-up window Tool Center, select "Delete a form".
4. Select "Delete" next to "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and follow the instructions.
5. Click on the "Search" on the top and type “1099-R”  
6. Click on “Jump to 1099-R” 
7. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
8. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
9. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
10. Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.

Please let me know if this worked for you.

[m319]

Thanks for looking into this issue!

The 2 workarounds did NOT solve the problem. 

I do see that I can manually override the Iowa return and include the distribution income- however, this is still an issue that Turbotax needs to address and make an update to the desktop software. 

Most tax filers probably won't notice this error and will unknowingly submit incorrect  state tax returns. 

[m319]

@Cynthiad66  @DanaB27 

An update to my Turbotax Premier was available today, 3/23/2023.

After updating, the error has been fixed.  

 Consider this issue resolved. 

Thanks for your help.