Disaster Distribution

Forum|Forum|4 years ago
March 24, 2022
2 replies
57 views

Hello. I took out a disaster qualified distribution from my retirement plan in 2020 and opted to spread it out in 3 years. Last year I was able to easily file it but this year, when I select that it is a disaster qualified distribution, there is a drop down list but the coronavirus is not listed there. Just a bunch of states with misc disasters. It also asks for disaster start date and end date. How do we bypass this and can it be left blank?

Thank you!

TurboTax Deluxe Online

JD_Messner

Level 2

There is a flaw in the software that I am trying to get to the attention of the developers.

To report the Disaster Distribution income, you need to enter the information under "Retirement Plans/ Social Security" . Under the drop down for 1099-R, answer "no" to a 2021 distribution ----> continue, answer "Yes" to Have you ever taken a disaster distribution before 2021? -----> continue, answer yes to Did you take a 2020 Qualified Disaster Distribution?, then check the box next to If this was a Coronavirus-related distribution reported in 2020 check here.

The problem is, the software is NOT using the questionnaire to populate the form 8915-F, so it calculating the 1/3 total distribution and adding it to your 2021 income, nor is it adding the tax due on the income to your tax bill.

pjpbydasea

Level 2

will the 2021 tax software be updated soon to correct the issue reported in the software -

The software tells me that "I can't file yet due to disaster tax relief laws being passed by Congress" - when the IRS website clearly tells us to file 8915-F - looks like a bug in the software - PLEASE ADVISE - is there a work around to update the form manually if the questionnaire can't handle it - I would NOT like to file an extended return when it appears that there is no "real issue" - just the software..

Thank you

JamesG1

Level 15

I do not know what kind of distribution you are reporting.

I am able to report Qualified 2020 Disaster Distributions From Retirement Plans (Other than IRAs) in Part II from the 2020 8915-E.and:

I was able to generate an IRS Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments and report distributions other than IRA's in Part II.

I did not repay any 2020 Qualified Disaster Distribution in 2021.
I did not report a disaster distribution in 2017, 2018 or 2019.
I reported No for the second question Did you take a disaster distribution at any time between 2018 and 2020? after the section Wages & Income and before the section Deductions & Credits.

The intent is for you to see the 1/3 spread over the three years:

Included on the 2021 Federal 1040 tax return line 5b,
Not included on the 2021 Federal 1040 tax return line 5a, and
In Part II of Form 8915-F on lines 12, 13 and 15.

Disaster distributions taken in 2017, 2018 and 2019 may be available on March 31.

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Cynthiad66

Level 14

No. It is required to answer the question. However, the form needed to properly report the second year of the distribution was just finalized by the IRS today. You are seeing all of this information because the form is not ready yet in TurboTax. It will now take TurboTax a few days to program into the system then get it approved by the IRS before the form will work accurately. Please allow a few days then check back to file your return as seamlessly as 2020.

Keep in mind:

It takes some time to incorporate state forms into TurboTax. While they may be available from your state on a given date, we need a few days to make the forms available for use in TurboTax.
When you locate your form or schedule, there will be dates for both Print and (depending on the state and the form) E-file availability. If the E-file form is listed as unsupported, the form must be printed and you'll need to mail your return.
Forms and schedules missing from the table aren't supported in TurboTax.

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JD_Messner

Level 2

Your software is allowing customers to fill out the disaster distribution questionnaire, complete their filing, then submit for an error check and file their return even though the income is not being reported on the return. It is NOT generating an 8915-F

JamesG1

Level 15

I not know what kind of distribution you are reporting.

I am reporting Qualified 2020 Disaster Distributions From Retirement Plans (Other than IRAs) in Part II from the 2020 8915-E.and:

Under Qualified 2020 Disaster Distributions From Retirement Plans (Other Than IRAs), I reported:

$3,000 to the right of 2020 Form 8915E, line 4, column b,
$1,000 to the right of 2020 Form 8915E, line 9, if you checked the box on that line, enter 0,
$0 to the right of 2020 Form 8915E, line 10, and
$1,000 to the right of 2020 Form 8915E, line 9.

I was able to generate an IRS Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments and report distributions other than IRA's in Part II.

I did not repay any 2020 Qualified Disaster Distribution in 2021.
I did not report a disaster distribution in 2017, 2018 or 2019.
I reported No for the second question Did you take a disaster distribution at any time between 2018 and 2020? after the section Wages & Income and before the section Deductions & Credits.

The intent is for you to see the 1/3 spread over the three years: