2020 Disaster Distribution - How to file 2023 taxes in Turbo Tax

[jamesjohn94]

I took a qualified disaster (COVID) distribution in 2020 and selected to spread the tax liability in thirds.

• In 2021 (filing for 2020) I added 1/3 of the distribution to my reported income using form 8915-E.
• In 2022 (filing for 2021) I added 1/3 of the distribution to my reported income using form 8915-F.
• In 2023 (filing for 2022) I added 1/3 of the distribution to my reported income using form 8915-F. This should have been the third and final year where I had to report the 2020 distribution.

When filing today (2024 for 2023 taxes), TT was carrying form 8915 over and automatically adding this to my income for the last year. This is incorrect as I no longer have to count it because it is now year 4. TT Live support (CPA, very helpful) instructed me to delete form 8915 from my tax file saying TT was simply carrying it over in a way to be helpful in case I needed it as I did in prior years. However, when going through the filing and asked if I took a qualified disaster distribution between 2018-2020 the answer is 'Yes' but I'm curious if I should select 'No' here because it says only click yes if I have it to report.. which I don't. 

Does anyone know what I should do? I don't want to select 'No' if this will flag me with the IRS, but I've already paid 1/3  over the last three years and should be clear of it so I really don't have anything to report. It's just confusing when the wording below could be Yes or No. 

Excerpt from TT form directly.

Did you take any disaster distributions in prior years or repay any prior year disaster distribution in 2023?

Victims of certain qualified disasters were eligible for special tax treatment of IRA and pension distributions. Qualified distributions could be included in income in equal amounts over three years and are not subject to early withdrawal penalties. Select Yes if you need to report 1/3 of the amount of your distribution from a prior year.

Any insight would be greatly appreciated! 

[VolvoGirl]

See this post for what to delete
https://ttlc.intuit.com/community/retirement/discussion/i-took-a-401k-wd-in-2019-then-spread-it-over...

You can go into Tools and delete the 1099R and 8915 form that transferred over.

[jamesjohn94]

I've done this, so is that it? I don't need to select 'Yes' when prompted about taking a distribution in prior years because I've already taken care of it over the last three years? Just want to make double-sure. Thanks again.

[RobertB4444]

You are correct.  That question is asking about a disaster distribution that you have taken that you still need to report.  You don't have one of those.  This is all done and the form should not follow you into next year.

@jamesjohn94 

[Sahayre]

I am having the same issue. I followed the instruction to delete the form but it is still carrying over my final 1/3 to my 2023 tax return.

[MonikaK1]

If you are having the same issue as the previous poster - that TurboTax has created another Form 8915-F and related worksheet and Form 1099-R from 2020 when the tax has already been paid over the previous three years - then these steps should resolve the problem. Be sure to delete all three of the related documents. You might also try logging out of TurboTax and then logging back in afterward.

Here's the procedure for deleting unwanted forms, schedules, and worksheets in TurboTax Online:

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 the form you wish to delete. In this case, look for Form 8915-F, Form 8915-f Worksheet, and Form 1099-R for the 2020 income that was already taxed, and follow the instructions.

See also this help article.

[Sahayre]

I am sorry but this did not help at all. I must be doing something wrong.

[DoninGA]

---

@Sahayre wrote:

I am sorry but this did not help at all. I must be doing something wrong.

---

If you took a retirement plan distribution in 2020 for Covid and paid back the distribution in tax years  2020, 2021 and 2022 you need to delete the 2022 forms that transferred over from your 2022 tax return.

Use this procedure and make sure you look for all the forms and worksheets in the list for the 2023 return -

The Form 8915-F Worksheet and the Form 8915-F along with the Form 1099-R were transferred from the 2022 tax return and need to be deleted.  There may also be a "Qualified Disaster Retirement Plan Distributions" and/or a "2020 Disaster Distribution" form listed that has to be deleted.

If you are using the TurboTax desktop CD/Download editions installed on your personal computer, click on Forms.

When in Forms mode locate these forms on the left side of the screen.  Click on the form to open each one and at the bottom of the screen click on Delete Form

If you are using the TurboTax online editions -

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

[MonikaK1]

Please clarify. Did you delete the Form 8915-F, the Form 8915-F Worksheet, and the Form 1099-R for prior year income?

In addition to deleting the forms, as explained previously, go back to the interview section for this item. Where TurboTax asks you about a disaster distribution that you have taken in prior years, this year you should answer "no" because you have already paid it back over the last three years. See the earlier comments in this thread. 

 [Edited 02/5/24| 2:07pm PST]

@Sahayre

[Sahayre]

I am not sure what I am doing is accurate. I will have to call for assistance. I am still having issues.

[PatriciaV]

Be sure to answer "no" to the question asking if you took a distribution in a prior year. The last sentence is key: "Select Yes if you need to report 1/3 of the amount of your distribution from a prior year." Since this doesn't apply to you, choose "No."

@Sahayre