cares Act IRA withdraw

Forum|Forum|4 years ago
March 26, 2022
8 replies
47 views

I used the Cares Act in 2020 to spread my excess IRA withdrawals over 3 years. I entered the 8915E info in TurboTax 2021 and it added the 1/3 amount correctly to my total IRA w/d for the year, but also added the 1/3 again to my pension - this is wrong, double counting - how do I correct?

Best answer by DoninGA

thank you. I checked the 2020 8915E and there is nothing on line 7 and the correct amount on line17. still having the same problem - any idea how to fix this problem?

@pat2022 wrote:

thank you. I checked the 2020 8915E and there is nothing on line 7 and the correct amount on line17. still having the same problem - any idea how to fix this problem?

Do not look at the Form 8915-E. Look at what you entered in the TurboTax program.

Enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

Answer No when asked if you received a Form 1099-R in 2021, if you did not receive the form

Answer Yes when asked if you took a disaster distribution

Answer Yes when asked if you took a Qualified 2020 Disaster Distribution

Check the box that this was a Coronavirus-related distribution reported in 2020

The only entry you should make is for the 2020 Form 8915E Line 17

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

DoninGA

Level 15

The taxable amount from a pension distribution would only be entered on Form 1040 Line 5b.

Did you receive a 2021 Form 1099-R for pension income?

The 1/3 of the 2020 withdrawal from an IRA would only be entered on Line 4b.

How did you enter the Coronavirus withdrawal for the Form 8915-F?

If the 2020 distribution was from an account that was Not an IRA

2020 Form 8915E Line 9 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

pat2022Author

Level 2

Thank you. It was an IRA witdrawal and it is accurately capturing the 1/3 amount in line 4b. BUT it is also adding the same amount AGAIN in line 5b. How do I fix that pension part?

DoninGA

Level 15

@pat2022 wrote:

Thank you. It was an IRA witdrawal and it is accurately capturing the 1/3 amount in line 4b. BUT it is also adding the same amount AGAIN in line 5b. How do I fix that pension part?

The program will not do that unless you entered the same amount for the 2020 Form 8915E Line 9 as was entered on entered for 2020 Form 8915E Line 17

Line 9 is for withdrawals that were NOT from an IRA

Line 17 is for withdrawals that were from an IRA

Go back to the section for Retirement Income on a Form 1099-R and review what was entered.