Disaster Distribution Third year payment not calculating correctly

[greasegremlin]

Hoping someone might be able to help.  I took a qualified disaster distribution in 2020 under the Cares Act.  We took out 27K, and split over three years.  The 8915-E looks correct for 2020 taxes showing three year split 9K in 2020, and when I filed 2021 taxes it correctly accounted for 9k.  Now, trying to file 2022 tax returns, TurboTax is prepopulating 2021 8915-F  information but it's not increasing my liability; it's not accounting for the third year amount of 9K. I'm not sure what to do.  I can fudge some of the blocks to manually increase it but I don't want that to impact anything.  Is anyone else possibly running in to this issue?

[DanaB27]

Form 8915-F isn't ready yet, please see When will my individual tax forms be available in TurboTax?

Once Form 8915-F is ready please revisit these steps:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
6. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
7. Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.

Please do not override entries since returns that contain overrides cannot be e-filed and may not be covered under the 100% Accurate Calculation Guarantee. 

[Edited 3/1/2023 | 9:55 am PST ]

@greasegremlin

[4snoozin]

Hi,

I did not have this exact issue but am familiar with how the system glitches a bit.

I suggest going into the forms view and overriding the pre-entered data to make it correct. 

You will  be prompted for any subsequent changes.

[greasegremlin]

The form says it's ready now and it's still not calculating what I owe this year correctly. I'm not sure what to do?

[DanaB27]

Please review the instructions below to report the 3rd portion of the COVID distribution:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
6. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
7. Uncheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and click continue
8. On the "Which disaster affected you in 2020?" screen select the blank entry (click on it) and click "back" 
9. Then recheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here", enter your information from your 2021 Form 9815-F (should be 1/3 of the distribution $9,000), and then continue.

If you are still having issues it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@greasegremlin 

[greasegremlin]

Thank you so much! So I figured out it is calculating, but the IRS is rejecting my return. Because I selected the box that it was a coronovirus distribution, there shouldn't be a disaster code in line C. TurboTax filled in the word "COVID" in line C so the IRS is rejecting saying it's an invalid code. I tried the troubleshooting recommendation when it was rejected and it didn't work, it was rejected a second time. If the 8195F was for coronovirus, TurboTax has to leave line C blank. Is that something that can be fixed or will I have to manually download and correct, then mail? I was hoping to efile all my taxes and unless I can fix it, I won't be able to. Thanks!!

[DanaB27]

Please try these steps to fix the rejection issue and delete the line C entry (if you only had the Covid Distribution):

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
6. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
7. Uncheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and click continue
8. On the "Which disaster affected you in 2020?" screen select the blank entry (click on it) and click "Continue"
9. Go through all the question
10. On the Income & Wage screen click "Edit" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
11. Click "Continue" on the “Review your 1099-R info​​​​​​​” screen
12. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
13. Then recheck the box next to "If this was a Coronavirus-related distribution reported in 2020 check here", enter your information from your 2021 Form 9815-F, and then continue.

Another option is to delete both "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and then go back to the retirement section and reenter the information:

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 "Form 8915-F" and "Qualified 2020 Disaster Retirement Distr" and follow the instructions.
5. Click on the "Search" on the top and type “1099-R”  
6. Click on “Jump to 1099-R” 
7. If you do not have any 2022 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
8. Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
9. Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
10. Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.

@greasegremlin 

[greasegremlin]

The first recommendation did not work, but deleting the form entirely and manually entering it did!  Thank you!