Disaster Distribution

[DoninGA]

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@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?

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

[Al1enish]

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. 

[a18cass30]

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. 

[Al1enish]

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

[DianeW777]

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 

[heavy208]

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.

[DoninGA]

@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.

[heavy208]

@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.

[DoninGA]

@heavy208 

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

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

[heavy208]

@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.

[DoninGA]

@heavy208 If you are using the TurboTax online editions take a look at the Form 1040 and see if there is an amount on Line 5b

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[a18cass30]

Again, there seems to be a bug. When I enter the info of the 1/3 distribution it doesn't update my income or anything. Just keeps telling me to "revisit" the same information I have entered. 

[heavy208]

@DoninGA, I can't do exactly that as I would have to pay in advance and I do not want to do that for now since TurboTax seems to be bugged. Regardless, I am 100% certain that this extra 1/3 tax is not being applied.

EDIT: looking through other posts on other threads, it seems this is a very common issue.

[DoninGA]

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@heavy208 wrote:

@DoninGA, I can't do exactly that as I would have to pay in advance and I do not want to do that for now since TurboTax seems to be bugged. Regardless, I am 100% certain that this extra 1/3 tax is not being applied.

EDIT: looking through other posts on other threads, it seems this is a very common issue.

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I have completed at least ten test tax returns and have never had this problem with the amount from the 8915-F flowing to the correct line on the Form 1040.

Also, you do not have to pay the TurboTax online account fees to look at the Preview of the Form 1040 using the procedure I gave you.

[a18cass30]

When I preview the income is not accounted for.