Cares Act Distribution, 8915-E

[teresamorgan0301969]

Hello,

How do I get to the form in which we spread the CARES Act distribution over 3 years?  Is that ready yet?  Is it form 8915-E?  And when I type in the form in the search bar it takes me to Rental Properties? 

Thank you,

Teresa M. 

[DianeW777]

Form 8915-E will allow you to pay tax on one third of the distribution over the next three tax years.  You can use the steps below to make sure you have chosen the right steps to complete it.

Steps to review in your tax return for this entry:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” you should see the “Your 1099-R Entries” screen and will click "edit"
4. Continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
6. Answer any remaining questions.

[teresamorgan0301969]

Hello, @DianeW777 

 I thought the 8915-E form (If you were impacted by the coronavirus and you made withdrawals from your retirement plan in 2020)  but I will be searching for the 1099-R ( to report the distribution of retirement benefits such as pensions and annuities).  I think I understand but not sure?  LOL

Thank you,

Teresa M. 

[WendyN2 · Accepted solution]

Yes, per @DianeW777 's instructions, you are actually "informing" the system during the walk-through she laid out for you. This will le the system know that the withdrawal was for these special circumstances. This information then gets reported on the 8915-E.

[teresamorgan0301969]

Hello, @DianeW777 @WendyN2 

It says: Based on the 1099R that you entered, it looks like you may need to pay extra taxes on this distribution."

There was no option about COVID at all? Not sure how to proceed?

Thank you,

Teresa M. 

[teresamorgan0301969]

Hello, @WendyN2 @DianeW777 

So all I have to do is put in the 1099R under the COVID option and that is it?  But why does my refund go down if I am supposed to pay over 3 years?

Thank you,

Teresa M. 

[LinaJ2020]

To answer Covid related questions under 1099-R, see steps below.  If you are using TTO, there are no known issues.    If you are using the desktop option, we are working to resolve this issue.  Click here: Covid related questions

To enter your Form 1099-R in the program, follow here:

In TurboTax online,

• Sign in to your account and select Pick up where you left off
• From the upper right menu, select Search and type in 1099r and Enter
• Select the Jump to 1099r
• Follow prompts to answer Covid related questions.

If you are under age 59 1/2, the distribution from the retirement accounts is considered as an early withdrawal.  Generally, you are subject to an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty. 

As far as the reason why refund goes down, to check numbers, you can preview your Form 1040 before file, here are the steps:

In TurboTax online,

• After sign in to your account, select Pick up where you left off
• To your left, select Tax Tools, click on the drop-down menu
• Select Tools, click on View Tax Summary
• Next screen, Review Tax Summary, to your left, select Preview my 1040

@teresamorgan0301969

[tjburtch]

It's now tax year 2021.  TurboTax does not seem to address years two and three of a 2020 Cares Act Withdrawal on the 1099R/8915-E.  Is that because the software is not yet available, or I just don't know how to enter years two and three?

Thank you,

tj

[FangxiaL]

For 2021, Form 8915-F is replacing 2020 Form 8915-E. It is used to report a disaster-related retirement distribution and any repayments of those funds. It also allows you to spread the taxable portion of the distribution over three years, if needed, and report prior year distribution amounts which are to be taxed in 2021.

As of today, Form 8915-F is not available yet.

The IRS is still working on the form and instructions for the form. Once IRS had made the form available, TurboTax will incorporate the form in the software.

[tjburtch]

Thank you, Fangxial.  That's very helpful.

tj