2020 IRA instructions for disaster distributions related to Covid

[amoresi1]

I took an IRA distribution in 2020 as a result of Covid 19.  When I enter my 1099-R and check that it was a result of covid disaster recovery I am told the IRS instructions for disaster distributions weren't ready for us to include in this release and to check back later.  I'm using the online web version.  Any idea when this will be updated?

[DoninGA]

Coronavirus-Related Distributions will be reported on the new IRS Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related Distributions).

The IRS has not yet finalized the Form 8915-E or the Form 8915-E instructions.

There is currently no date from the IRS for when this form will be available.

[amoresi1]

Thanks for the reply.  It looks like the form is still in draft status.  I presume once released TurboTax will be updated to include form 8915-E once it is released?

https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

[DoninGA]

Yes, after the IRS has finalized the form and instruction it will be incorporated into the TurboTax software.  But only after the IRS approves the TurboTax form and calculations based on the IRS instructions.

[djbrawler]

Can we please be notified of the progress of this form between IRS and then the subsequent TurboTax software update.  This will delay ability to prepare and file 2020 taxes.

[sephkyle]

I too can not finish my Turboxtax return because I withdrew money from my IRA thinking I can qualify for this 10% penalty reduction and spreading out the income over three years.  I guess we will have to wait and file an extension if needed.  

[amoresi1]

Don't do that.  The form should be ready around Feb. 18-20.

[PattiF]

The IRS will be releasing Form 8915-E to use with the 1099-R. Here is more information:

CARES Act and 1099-R Withdrawal.

The software has not been updated yet because the form has not been finalized by the IRS. Once the software has been updated, you will be prompted through the form with instructions on how to enter the information.

The IRS has not provided a release date for the form at this time. Use this link IRS Form Availability to watch for when the 8915-E form will be available in the software once the IRS completes it.

[Moira_Rose]

The link provided above for IRS Form Availability didn't work for me. But here's a link to the current status of the 8915-E:

https://www.irs.gov/forms-pubs/about-form-8915-e

(see Current Revision section on that page)

As of 2/10/2021, it still says DRAFT.

[SamS1]

At this point and time the Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments Use for Coronavirus-Related Distributions) is not finalized. We currently do not have an estimated date when the form is ready.

Please sign-up here and we will email you once the form is live.

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

[jjkkreed]

Thank you for the email link for updates.  I'm hoping this is released soon. 

[SamS1]

It will be soon.  Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, will be e-fileable starting 2/24.  The IRS is updating form 5329’s instructions to make it clear that COVID related exceptions cannot use 5329 and should use the new 8915-E.

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

[amoresi1]

Free Tax USA already has form 8915-E in their product. I filed my tax return with them today. 

[mhuff999]

My Home&Business TurboTax has the 8915E-T form, but it doesn't calculate line 4a or 4b correctly spreading out the distribution over 3 years.   Is that to be expected?

[macuser_22]

What is incorrect?  It is working fine after the last updates.    Try deleting the 1099-R and re-enter.