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Level 2
posted Feb 26, 2021 1:38:26 PM

Wisconsin Taxes Won't eFile - Form 1 Line 22 - Penalties on IRA - Expected Timeline?

Hi! I'm trying to file my taxes, and had to report a COVID-related IRA distribution on form 8915-E. I was able to e-file my federal taxes without issue, but if I try to e-file my state taxes, I get this error and I can't proceed further:

 

"Form 1: Penalties on IRA We're still working on updates related to Penalties on IRAs, retirement plans, MSA's distributions (Form 1099-R) that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when it's ready."

 

Just to make it clear, this means that I'm still waiting on the TurboTax software to make updates, correct? Is there an expected ETA for this fix so I can e-file? 

Thanks for any help you can provide!

0 25 3730
24 Replies
Returning Member
Feb 28, 2021 11:47:36 AM

I'm currently having the same issue, as far as i can tell there is no ETA on when this might update

Returning Member
Feb 28, 2021 12:08:21 PM

Same issue for New York.

Returning Member
Mar 2, 2021 9:34:15 AM

I called the Wisconsin Department of Revenue to ask whether there was a special form required to designate that the IRA withdrawal is coronavirus related. There is not.  The representative just said to enter a zero in line 22 or perhaps leave the field blank.  Overriding the data in Turbotax still results in failure to e-file the Wisconsin state return.  I called Turbotax support, the person could not provide any help.  I hope someone from Turbotax can provide a resolution for this problem!

Level 1
Mar 3, 2021 9:31:24 AM

I am also having the same issue. i heard it suggested also to try in the Penalties on IRAs, retirement plans, MSAs, etc Smart Worksheet what appears on line B to add the same amount on line C. 

 

This also did not work. 

 

WOuld you think it should be ok to File by mail?

Level 2
Mar 4, 2021 7:11:01 AM

Has anyone gotten an update on this? I tried calling support and that was worthless. They tried some stuff which ultimately wasn't helpful. Then the final answer was "keep trying and checking back every day until the message goes away." Are you kidding me? No time table at all?

Level 1
Mar 4, 2021 10:38:52 AM

It’s the kind of response that makes me not want to continue using TurboTax.

Level 2
Mar 4, 2021 10:59:53 AM

It's also a little frustrating that you're only notified of this during the "final check" after you pay the state filing fee... 😕

Level 2
Mar 4, 2021 11:09:55 AM

Agreed. And you can't get a refund to use a diff service. "if you pay for it it means it was to your satisfaction." No! I paid for it because I had to in order to find out that you won't efile it. 

Level 2
Mar 4, 2021 11:40:53 AM

I upgraded to TurboTax Live to try and see if they could fix it and that wasn't any help. This is a very frustrating message -- especially when the 8915-E form has been out for a while now and integrated into TurboTax. The person I talked to mentioned that they are waiting on forms from the IRS, but why would the IRS need to deal with stuff on a state level? Seems like a cop out answer to me. 

Level 3
Mar 5, 2021 12:40:28 PM

I have the same issue.  Called Turbotax twice.  Both times, when the person put me on hold so they could look into it, they disconnected me. 

 

Everything I'm seeing is that Wisconsin is waiving the penalty.   Wondering if there is a form that is missing on the site?

Level 1
Mar 6, 2021 2:32:20 PM

I was able to bypass this by:

-going to state 

-selecting retirement/ MSA Plan Penalty Tax 

-entering the full amount of penalty 


Edit: Never mind. Now it says I have to file by mail. 

Level 2
Mar 6, 2021 2:50:08 PM

I didnt think there was a form. Gov Evers signed the same federal rules around it into law was my understanding. I believe I also read that Wisconsin is waiving the tax on any covid related distribution for 2020 (don't quote me on that) 

Level 1
Mar 6, 2021 3:10:25 PM

Customer service is telling me the form update is due by 3/24/2021, but could be sooner. 

You can file just your federal right now by selecting “file by mail” and then selecting “file later” for Wisconsin return. 

Level 2
Mar 6, 2021 3:51:16 PM

Thank you. That's a great update in light of the possible new stimulus news. We added a new dependent as of 2020 and would ideally not like to wait for a new credit in 2022 because we missed the boat again. 

Expert Alumni
Mar 7, 2021 5:32:08 AM

It is possible to e-file the federal and delay the state by carefully following the three steps to file and only selecting the federal.

 

For more information, see: How do I e-file my state after I already filed my federal?

 

Regarding adding your baby to the 2020 tax return, report what, if anything has been received for the first and second stimulus by following these steps for the Recovery Rebate Credit:

  1. Go to the search box and enter stimulus. Click the Jump to link.
  2. Answer Yes.
  3. At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
  4. If no stimulus amount was received, enter 0. An amount must be entered in each box. When finished, click Continue.

Regarding the new stimulus news, the IRS has not issued any further guidance on the impact of the new legislation. For the most recent updates, see: Coronavirus Tax Relief and Economic Impact Payments.

 

@Joshuatree2

@okhamphouy

Level 2
Mar 12, 2021 4:56:47 PM

Any updates on this?  Is the plan still March 24th?  Any feedback would be appreciated on this.  Thanks!

New Member
Mar 12, 2021 5:25:21 PM

Same issue for Wisconsin, this is so frustrating.  Can anyone tell me the support phone number, I can't even find that.  

Level 2
Mar 14, 2021 1:36:48 PM

Thank you for your post. I was able to figure out how to file just my federal and delay my state. At first, it was a little tricky to figure it out.

 

If anyone is having troubles, I figured it out by selecting file by mail and it brought me to a screen to where I could pick how I wanted to file both my state and federal by hitting edit. After that, I was able to select to delay state. Hopefully that helps someone! 

New Member
Mar 17, 2021 12:49:38 PM

I've been waiting for the issue to be resolved. I've already paid turbo tax to file, but this issue has yet to be resolved. It's frustrating not be able to file my taxes that have been completed for a month now.

Level 2
Mar 17, 2021 1:02:00 PM

Agreed. There are work around to at least getting fed filed. All of the ones mentioned worked. I got my fed filed and just have it on my calendar to remind myself to go back and try and submit state at the end of the month. From what I'm understanding from the email I got at the accounting firm that I work at, the IRS is planning on pushing the deadline back to mid-May. 

Level 2
Mar 17, 2021 1:10:15 PM

Also having the same issue... won't let me put blank or 0 since Wisconsin is waiving penalty. Hopefully an update soon... very annoying this is taking so long. I think I might just switch back to my accountant since Turbotax decided to increase prices again and then stuff like this happens...

Level 1
Mar 17, 2021 2:02:30 PM

I just sent my Wisconsin taxes in manually. 

  1. Switch to Forms Mode if you're in the Step-by Step interview. 
  2. Right-click the line item and select Override (Windows) or choose Override from the Edit menu (Mac).
  3. Enter the value; it should turn red, indicating an override. (In this case 0)
  4. Switch back to the interview by clicking Step-by-Step in the upper right corner.
  5. I printed out my Wisconsin return.
  6. If you were required to file a Form 5329 or 5330 with your Federal return enclose a copy of it with your Form 1. ( this is from WI Dept of Revenue instructions for Line 22 of Form 1)
  7. I searched for both forms and found Form 5329.
  8. Then I went to File>>Print Active Form
  9. It's not doing it electronically but at least you can file your state return. I've always found the State of Wisconsin gets the money to you quickly even with a paper file.

 

Level 2
Mar 17, 2021 2:13:48 PM

I just got off an hour and a half phone call and the response that I got was that this issue will be fixed on March 25th. I shared my screen and then the person I was talking to, spoke to some sort of "tiered" support and then they told her March 25th. So...fingers crossed I guess.

Level 2
Mar 18, 2021 12:26:28 AM

The problem is fixed. I was just able to successfully file my Wisconsin taxes!