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posted Mar 3, 2021 6:50:10 AM

How do you suggest a correction to the Turbo Tax software?

When entering a 1099R, from a Roth 401k distribution due to Corona Virus, if you enter the form correctly, box 7 codes 1B and the box 2a Taxable Amount, TT does not fill in form 8915E correctly. It uses the Taxable Amount not box 1 Gross Distribution for the form. And if you use code B it will not recognize (ask the corona virus prompt) the covid distribution at all. How can submit a suggested change to the software?

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1 Replies
Expert Alumni
Mar 3, 2021 7:10:11 AM

 

We are aware of this experience and are looking into it further. Thank you for the valued feedback!

 

If you have code 1B in box 7 then please follow these workaround steps from user dmertz as discussed in 1099R Coronavirus Exception Issue: 

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
  4. Continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
  6. Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
  7.  On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
  8. When you continue the COVID questions are still accessible

 

You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

 

[Edited 3/7/2020 | 11:22am PST]

@phinancialwiz