Disaster Distribution

[smason1284]

I have finished my taxes and TurboTax will not allow me to file because I took a Virus Relief out of my IRA in 12/2020.  I checked the box that I took a disaster relief between 2018-2020 because I assume that's what that withdrawal is considered? I get a screen that says I cannot file because of some law congress passed and that it may mean I get more money back.  

TurboTax says

You'll need to visit Form 1099-R Retirement

Unfortunately, changes related to qualified disaster distributions and repayments weren't ready in time for us to include them in this release.  Please visit the Retirement topic IRA, 401(K), pension plan withdrawals (1099-r)

I tried calling TurboTax and just get stuck in the automated voice junk, I can't "ask a tax professional" because I used deluxe...

Any ideas?  Help?  I really want to get my taxes done and out of my hair

[DoninGA]

If you selected to have the 2020 Covid-19 distribution from a retirement account spread out over three years, then the IRS Form 8915-F is used to report the 1/3 distribution in 2021.  This form is not yet available in TurboTax.

Form 8915-F, Qualified Disaster Retirement Plan Distributions and Retirements is scheduled to be available in TurboTax on 03/24/2022

Go to this IRS website for IRS forms availability - https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_windows_individual.htm...

[smason1284]

I spoke with my retirement company and they said that because I did a virus withdrawl that it is not a disaster distribution.  I did not take the money out to fix my residence after a disaster so I am assuming I can just put NO I did not take a disaster distribution?

[DoninGA]

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@smason1284 wrote:

I spoke with my retirement company and they said that because I did a virus withdrawl that it is not a disaster distribution.  I did not take the money out to fix my residence after a disaster so I am assuming I can just put NO I did not take a disaster distribution?

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If you did Not select to have the 2020 virus distribution spread out over three years then answer No.  However, if you did have the distribution spread out over three years then answer Yes.

[smason1284]

Thank you SO much!  This answers my question!  I can go home and file my taxes now!

[Brib3]

I have the same problem! I checked the box yes on accident and now turbo tax will not let me edit or uncheck the box to efile! It also will not let me delete and start over because I already paid for my TurboTax program? HELP!

[DoninGA]

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@Brib3 wrote:

I have the same problem! I checked the box yes on accident and now turbo tax will not let me edit or uncheck the box to efile! It also will not let me delete and start over because I already paid for my TurboTax program? HELP!

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Try this procedure -

Did you take a disaster distribution from your pension funds between 2018 and 2020? A disaster distribution allowed you to spread the distribution over three 1040 tax returns.

If so, IRS Form 8915 will be needed to complete your tax return but that form is not yet available.  See this TurboTax Help.

If you did not take a disaster distribution from your pension funds between 2018 and 2020, there may be a question that needs to be reviewed.  Follow these steps.  

• Go to Federal / Wages & Income.
• Scroll down to Wrap up income.
• Continue.
• At the screen Did you take a disaster distribution at any time between 2018 and 2020? answer No. 

Now watch the headings under Federal closely.  

• When you are in Deductions & Credits. 
• Scroll down and click on Wrap up tax breaks.
• Then you are in Other Tax Situations.
• Scroll down and click on Let's keep going.
• Continue through to Federal Review. 

[nelsonryd]

Had this issue as well.  Your solution worked!!!!  Thank you!

[mverma2022]

I was wondering if P EBT qualify "Check if you took disaster distribution between 2018 and 2020."

[TeresaM]

No, this question for disaster distributions is specifically for if you took a distribution from your retirement account because of a disaster. There are specific exceptions in that case.  If you had, this would change the area for Form 1099-R.

P-EBT benefits are different and are not reported to the IRS as taxable income. 

[brianbhhh]

Nothing like waiting until the last minute, TurboTax. 3/24/22? Why so late? It's not like you haven't known about these distributions for a long time...

[AliciaP1]

We are working to get this integrated into the software as quickly as we can.  The IRS issued notice in late January 2022 that they were changing the form to report the distributions to reflect eligible disasters from 2021.  Once the form is changed the IRS then has to issue the format to e-file the form.  TurboTax needs time after that to get the formats finalized for processing within the software.

@brianbhhh

[dabutler]

Today is the 24th - the day the form is supposed to be available, but it still isn't.  Any idea when i can expect to finally be able to file my return?  I have already paid to use turbotax, so I don't want to change to another software even though others have this form released already.

[DoninGA]

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@dabutler wrote:

Today is the 24th - the day the form is supposed to be available, but it still isn't.  Any idea when i can expect to finally be able to file my return?  I have already paid to use turbotax, so I don't want to change to another software even though others have this form released already.

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Are you using the TurboTax desktop CD/Download editions installed on a personal computer?  If so, update your software.  Click on Online at the top of the desktop program screen.  Click on Check for Updates.

The Form 8915-F is available.

[Al1enish]

The form is calculating 2/3 instead of 1/3 of taxable distribution for the year 2021. Does anyone know what is going on with that? Is the form completed or is it still in beta?