Did you take a disaster distribution...

[CaNj]

Trying to file on my own for the first time.  Turbotax asks "Did you take a disaster distribution..."  This distribution doesn't mean the money that was sent from the IRS as part of the "Economic Impact Payment? 

Turbotax seems to ask whether you took money out from your retirement because of covid and other disaster.

[DanP0428]

Under the CARES act you could take money from your retirement and not have a penalty for early withdrawal.  The tax could be paid over a 3 year period.  You would know if you took advantage of that.

[CaNj]

DanP0428:  

Thank you for your clarification!

Gratefully,

CaNj

[DawnC · Accepted solution]

The disaster distributions being asked about there in TurboTax would have been reported to you on Form 1099-R.   If you did not receive that form, you can answer NO.   Assuming this is the first year you are filing a tax return, you would not have received this income in the past.  

[hollymolly123]

2022 tax error on  Form 8915-F with 1099-R distribution not related to a disaster:

I have 1099-R with a contribution removal, not related to a disaster.  I clicked "No" to the question of ".... take a distribution at anytime between 2018 and 2021?"  But the TurboTax errors out due to the unfinished Form 8915. I tried the step-by-step instruction of  clicking Done with Income" in Wages... tab and No to the question again and again.  That did not work.

[Cynthiad66]

Let's try to delete the form 8915-F.  Follow these steps.

Use these steps 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.

[hollymolly123]

Step 8 and 9, you said, Yes to the questions. The distribution is not disaster related, but an excess removal.Do I still click Yes to these?

[BrittanyS]

Correct, if you took advantage of the early withdrawal without penalties, allowed under Cares Act, and the tax is to be paid back over the three periods, you will mark yes to the qualified disaster distribution questions.  

@hollymolly123 

[hollymolly123]

To clarify my question, I cannot use Form 8915-F.

But TurboTax is showing "Form 8915-F-S not Done? and the Smart Run check shows an error in the form. I am unable to fix it.

[hollymolly123]

I read your post after I posted mine. If I have to say "Yes" to the disaster related distribution, then what year should I say Yes to, 2022?

[hollymolly123]

Hi, 

I found why I am having this Form 8915-F problem after talking to Vanguard. 

The Vanguard tax team said,  the code has to be 8J together. But TurboTax is taking it as 8 and J as it takes the values from the dropdown list. The code J as separate is causing my problem. 

I am over 59.5 years old with over 10 years in ROTH. My distribution is not disaster related, but excess removal. I cannot say Yes to the question, "...related to disater...."  I do not have FEMA # or have not had any impact from Covid.  Is it possible to convey this possible bug to TurboTax tech team to add 8J in the box 7 dropdown list?  Thank you!

[DanaB27]

I cannot recreate that Form 1099-R with codes 8 and J is triggering a disaster distribution. Please check the follow-up questions that you didn't accidentally select it was a disaster distribution. Also, if you get the 10% early withdrawal penalty calculated then make sure you enter the earnings from box 2a under "Another reason" to get the exception.

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Click "edit" to review your Form 1099-R and the follow-up questions
5.  Click "Continue" on the “Review your 1099-R info​​​​​​​” screen
6. Answer "No" to the "Have you ever taken a disaster distribution before 2022?" screen
7. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount from box 2a under "Another reason" since you are over 59 1/2 

@hollymolly123 

[hollymolly123]

I did not accidently select Disaster distribution.  Looks like TurboTax links the form 8915-F if the 1099R box7 code has J.  Once the form is attached to 1099R, TT shows an error for the form not done even though I answered No to the disaster related questions.  Isn't this a bug in TurboTax?

[DanaB27]

I cannot recreate this issue and it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@hollymolly123 

[hollymolly123]

Thanks @DanaB27 ,  this is resolved. 

This is what I did and it cleared the error: 

- Select "Form 8915E Wks"

- Uncheck box C (it was checked), "if you received any distribution in 2022 related to a disaster that occurred in 2021 or 2022. Check this box." 

After unchecking this, the error was gone so are the forms. 

I did not even have to delete the forms, 8915-F or 8915E Wks.   

Thanks @DanaB27 again.