Final CARES Act repayment doesn't seem to affect my refund

Forum|Forum|3 years ago
April 12, 2023
1 reply
0 views

I took $30k in a CARES act distribution in December of 2020. I paid back $10k before filing in 2021 and another $10k before filing last year. I paid the final 1/3 in December. When I entered it into the 8915 section in TurboTax, it didn't change my refund amount at all (actually, I owe this year, but it's still the same concept, right?). Just to "play" with it a little, I changed the value to a buck, and to $100k, but my "refund" didn't budge a penny. I assume either there's something obvious that I'm missing, or the whole deduction was captured in my 2020 return? Or something else/

DanaB27

Level 15

Please be aware, the maximum repayment that can be allocated to the 2022 tax return will be 1/3 of the distribution ($10K). If you paid back more this would have to be carried back to 2020 and 2021. Therefore, if you enter a bigger repayment amount it will not affect your refund.

Please check Form 1040 line 4b (if it was from an IRA) or 5b (if it was a non-IRA), the $10k (1/3 of the distribution) should not be included since you paid it back.

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

Please follow these steps to report the 3rd portion of the COVID distribution or any repayment:

Login to your TurboTax Account
Click on the "Search" on the top and type “1099-R”
Click on “Jump to 1099-R”
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)
Answer "Yes" to the "Have you ever taken a disaster distribution before 2022?" screen
Answer "Yes" to "Did you take a 2020 Qualified Disaster Distribution?"
Check 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.
Enter the repayment (up the 1/3 of the distribution, any excess repayment will have to be carried back to 2020 and 2021) on the "Did you repay any 2020 Qualified Disaster Distribution in 2022?" screen

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

sgrenaldAuthor

Level 2

Hi Dana!

Thanks for the suggestion. I'm using Mac TurboTax, so some of the navigation instructions didn't apply. But I have nothing in 1040 line 4b (related to this, anyway). And I paid $10k back last year and $10k back the year before, so this is the last $10k.

Here's what I did...

1. Under Retirement Plans & Social Security, I answered "Yes" to Did you take any disaster distributions in prior years or repay any prior year disaster distribution in 2022

2. On the next screen I answered "No" to Did you take a distribution in 2021 due to a non-covid disaster

3. answered "Yes" to "Did you take a 2020 Qualified Disaster Distribution?

4. Checked the box next to "If this was a Coronavirus-related distribution reported in 2020 check here", entered $10,000 from line 25 of my 2021 Form 9815-F.

5. On the next screen ("Did you repay any 2020 Qualified Disaster Distribution in 2022?) I entered $10,000 for Repayment made to a traditional IRA

And that was it! Like I said, if I change the value from Step 5, to a smaller number, it doesn't change my "Tax Due" value. Any clue what I'm doing wrong?