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Returning Member
posted Mar 10, 2022 9:05:41 AM

Disaster Distribution

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

 

 

 

0 88 30720
24 Replies
Level 15
Mar 10, 2022 9:10:13 AM

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.html

Returning Member
Mar 10, 2022 9:18:29 AM

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?

Level 15
Mar 10, 2022 9:21:25 AM


@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?


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.

Returning Member
Mar 10, 2022 9:48:10 AM

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

Returning Member
Mar 15, 2022 8:32:35 AM

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!

Level 15
Mar 15, 2022 8:47:15 AM


@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!


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

Level 1
Mar 17, 2022 2:08:12 PM

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

New Member
Mar 21, 2022 6:17:33 AM

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

Expert Alumni
Mar 21, 2022 8:55:52 AM

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. 

Returning Member
Mar 23, 2022 6:52:15 AM

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...

Expert Alumni
Mar 23, 2022 8:51:22 AM

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

New Member
Mar 24, 2022 8:14:13 AM

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.

Level 15
Mar 24, 2022 8:18:48 AM


@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.


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.

Level 1
Mar 24, 2022 8:57:17 AM

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?

Level 15
Mar 24, 2022 9:00:52 AM


@Al1enish wrote:

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?


Worked for me.  2020 Form 8915E Line 9 was exactly 1/3 of the 2020 distribution.

Level 1
Mar 24, 2022 10:46:00 AM

My 2020 8915 line 9 is 1/3 of my distribution but on my forms for 2021, it's stating 2/3 as taxable income from the distribution. 

Level 1
Mar 24, 2022 12:23:44 PM

The form is there, but not working and keeping me on an endless loop. I entered in all my info from 2020 8195E, answer all the questions, and then it keeps telling me to revisit the area, and brings me back to the pages I already have filled out with the information I filled in. I spent two hours with Customer Service today and no one could figure out what I was talking about. I just want to file my taxes and wondering why no one is able to help me get this form to calculate. 

Level 1
Mar 24, 2022 12:40:05 PM

Now it's asking me for a FEMA disaster number and beginning/end date. (Face palm) 

Expert Alumni
Mar 25, 2022 6:25:47 AM

The following steps should be used to enter your COVID qualifying distribution.  Do Not enter a FEMA code because this doesn't have one. You must have your Form 8915-E from your 2020 tax return.

 

  1. Wages & Income > Retirement Plans and Social Security
  2. IRA, 401(k), Pension Plan Withdrawals (1099-R) >  Start, Revisit or Update > Continue
  3. Answer Yes  'Have you ever taken a disaster distribution before 2021?
  4. Answer Yes, You had a 2020 Qualified Disaster Distribution (carefully enter the amount-do not duplicate)
  5. Complete the Information using your 2020 Tax return > Continue
  6. Enter any amount you may have repaid in 2021, if applicable
  7. Finish the entry for your spouse if applicable or just click Continue
  8. Complete any additional retirement questions as you move through this section
  9. Continue until you have finished and returned back to the Wages & Income Screen.
  10. Do NOT stop and change sections without completing it.

@Al1enish

@a18cass30 

Returning Member
Mar 25, 2022 7:42:45 AM

The Turbotax page is working fine, but when I wrap it up it does not add my 1/3 owed tax to my 'Federal Tax Due' up top and then later on asks me to revisit the 401k withdrawal page. Something is broken. Here is what I entered in the 401k section:

 

If this was a Coronavirus-related distribution reported in 2020 check here. (checked)

 

2020 Form 8915E, line 4, column b: 22,787.

2020 Form 8915E, line 9, if you checked the box on that line, enter 0: (left blank)

2020 Form 8915E, line 10: 0.

2020 Form 8915E, line 9: 7,596

 

2020 Form 8915E, line 17, if you checked the box on that line, enter 0: (left blank)

2020 Form 8915E, line 18: 0.

2020 Form 8915E, line 17: 0.

 

As you can see, I withdrew $22,787 from my 401k in 2020. Then I paid back the taxable $7596 along with my 2020 tax return. Why is the taxed owed for the additional $7596 not being added to this year's return? Thank you.

Level 15
Mar 25, 2022 8:01:00 AM

@heavy208 The first 1/3 of the 2020 distribution would have been reported on the 2020 tax return.  If you repaid that amount in 2020 that should have been entered on the 2020 tax return.  Only repayments made in 2021 can be reported on the 2021 tax return.

If no repayments were made in 2021 then the full 2nd 1/3 of the 2020 distribution would be entered on the 2021 tax return and is reported on the Form 1040 Line 5b as ordinary income.

Returning Member
Mar 25, 2022 8:32:48 AM

@DoninGA 

 

I paid my first 1/3 repayment via Turbotax last year. Everything went well and my 2020 tax return was filed.

 

Now, I simply want to pay the next iteration, but TurboTax is putting me on an endless loop. I simply want to pay the full second 1/3 on this year's return. What am I doing wrong here? I'm going to:

 

  • Wages & Income
  • IRA, 401(k), Pension Plan Withdrawals (1099-R)
  • Did you get a 1099-R in 2021? (answered no)
  • Have you ever taken a disaster distribution before 2021? (answered yes)

 

And thus I am on the page which I described in my previous post. Are you telling me that I should be entering this second 1/3 as INCOME along with my salary and wages? Thank you.

 

 

 

 

Level 15
Mar 25, 2022 8:48:55 AM

@heavy208 

When you entered - 2020 Form 8915E, line 9: 7,596

 

That amount will flow to the 2021 Form 1040 Line 5b as income

Returning Member
Mar 25, 2022 8:54:41 AM

@DoninGA, that's my understanding, but that 1/3 taxable income is not being added to the Federal Tax Due that I am seeing up top. I even pushed on through all the way to the end, passed State Taxes, and still it was not incremented.

 

This seems like a bug to me.