Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions

[ksagara]

The IRS allows the taxation of COVID-related retirement distributions to be spread out over three years.  The instructions use an example of reporting one-third of the entire amount each year.  My question is whether the reporting of the distribution must be one-third for each year or whether the portion reported for each of the three year can be different as long as you eventually report the entire distribution?  For example, if I took out $30,000, do I have to report $10,000 in each of the subsequent three years or can I report $5,000 in 2020, $5,000 in 2021, and $20,000 in 2022, based on an expected lower income in the future?

[KathrynG3]

Yes, it must be reported evenly over the next 3 years, one third in each year, 2020, 2021, and 2022.

Form 8915-E was only recently approved for electronically filed returns. Our engineers are working hard on updating the program to accommodate the changes and are expected to have the update ready by February 25, 2021, as of this writing.

For more information, see; What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?

Until the program is updated, if you wish to proceed, you would have to paper file. The IRS takes at least 6-8 weeks to process a paper filed return and 2-3 weeks to process an electronically filed return.

To paper file your return, see these links:

• How do I print and mail my return in TurboTax Online?
• How do I print my return in the mobile app?
• How do I print and mail a return in the TurboTax for Windows CD/Download software? 

[Brady5]

I filed form 8915E last year paying tax on 1/3 of the withdrawal.  Turbo Tax does not seem to be automatically pulling in the next 1/3 in my 2021 forms.  How do I enter the data to pay this year's 1/3?

[MayaD]

This year you will be using Form 8915-F to report:

• Qualified 2021 and later disaster distributions, if any;

• Qualified 2020 disaster distributions made in 2021 or 2022, as applicable (coronavirus-related distributions can't be made after December 30, 2020);

• Repayments of qualified 2020 and later disaster distributions;

• Income in 2021 and later years from qualified 2020 and later disaster distributions; and

• Qualified distributions received in 2021 and later years. Instructions for Form 8915-F

However, form 8915-F won't be available until 03/17/2022.