Diaster Distribution

[sjth226]

I am super confused about what to do.  We took a disaster relief withdraw from my retirement in 2020 related to COVID.  We opted to pay the taxes over the 3 years but no matter what I do I cannot get this to show up and the questions just keep looping back on themselves.  Any thoughts on how to claim that "income" and then be able to file?

[JamesG1]

Are you reporting the third year of a 2020 Qualified Disaster Distribution?

If you are reporting the third year of a Qualified Disaster Distribution, you will report 1/3 of the 2020 distribution.  Follow these steps to the screen Did You Take a 2020 Qualified Disaster Distribution:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Click Edit / Add to the right of IRA, 401(k), Pension Plan Withdrawals.
• At the screen Here's your 1099-R info, click Continue.
• Continue to the screen Did You Take a 2020 Qualified Disaster Distribution.

If you are reporting the third year of a Qualified Disaster Distribution, you will report 1/3 of the distribution:

• on lines 11 and 13 for retirement plans (other than IRA's) or
• on lines 22 and 24 for traditional, SEP, SIMPLE and Roth IRA's.

To be able to electronically file, there is a workaround by @DanaB27 concerning checking the box If this was a Coronavirus-related distribution reported in 2020, check here at the screen Did you take a 2020 Qualified Disaster Distribution?  

1. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
2. If the box is checked, uncheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and click Continue.
3. On the "Which disaster affected you in 2020?" screen I selected the blank entry and click "back" 
4. Then recheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and Continue.

Please let us know at @JamesG1 if this worked for you.

@sjth226 

[sjth226]

This did not work....the amount I enter for the IRA withdraw does no show up as income and then it falls right back in of saying need to re-visit the form 1099-R

[DanaB27]

Please be aware, the 3rd portion of the 2020 Covid distribution won't show on the Income & Wages screen. You will need to check Form 1040 to see if the amount is included on line 4b (for IRA).

After you verified that your entry is correct on Form 1040 and on Form 8915-F you can ignore the prompt that you need to revisit the retirement section.

To preview Form 1040 in TurboTax Online:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

@sjth226