IRS Form 8915-F not being added to 2021 reported income

[JD_Messner]

Hello, 

I reported a form 8915-E CARES Act withdrawal from 2020 and paid 1/3 of the income tax due in 2021.  Now that form 8915-F has been released,  I discovered a critical flaw in the TurboTax Online tool. Te information being gathered in the 1099-R questionnaire for form 8915-F is NOT being added to my 2021 taxable income and the additional income tax is NOT being calculated on my bill.    After entering all of the data including checking the box for a CARES act withdrawal and the amount reported in 2021, I submitted my return for error checking and successfully transferred my e-file to the IRS before I caught the problem.    The software did NOT generate a form 8915-F, it did NOT add 1/3 of my 2020 CARES Act withdrawal to my 2021 taxable income and it did NOT calculate and add the tax DUE to my 2021 return. 

Please escalate this to the software team ASAP.   Your software is not properly reporting income. 

[JamesG1]

If your return has been transmitted and accepted by the IRS, you will need to amend your Federal 1040 tax return.

Were you reporting distributions in Part II or Part III of the Form 8915-F?  Please clarify.

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.

[JD_Messner]

I am in that section right now:

Did you get a 1099-R in 2021?  -----  No ------ Continue
Have you ever taken a disaster distribution before 2021? ------ Yes --------  Continue
Did you take a 2020 Qualified Disaster Distribution? --------  Yes -------- 
If this was a Coronavirus-related distribution reported in 2020 check here.  --------- Checked
2020 Form 8915E, line 4, column b ----------  Amount entered
Did you repay any 2020 Qualified Disaster Distribution in 2021? -------- No

Continue through the questionnaire and the 8915-F is not generated, nor is the income added to my 2021 income. 

[DoninGA · Accepted solution]

@JD_Messner 

Did you go through the Retirement income section of the program?

If you had a Covid-19 related distribution in 2020 and selected to spread the distribution over 3 years -

Answer No when asked if you received a Form 1099-R in 2021, if you did not receive the form

Answer Yes when asked if you took a disaster distribution

Answer Yes when asked if you took a Qualified 2020 Disaster Distribution

Check the box that this was a Coronavirus-related distribution reported in 2020

2020 Form 8915E, line 4, column b - Enter a 0

If the 2020 distribution was from an account that was Not an IRA

2020 Form 8915E Line 9 - Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

If the 2020 distribution was from an IRA account

2020 Form 8915E Line 17 -  Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

[JD_Messner]

That did it.   Thank you for clarifying!

[JD_Messner]

How did this make it through "error checking" if I did not enter anything on Line 9, after entering the total distribution on line 4?

[JamesG1 · Accepted solution]

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.

In addition:

• 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.

[fanfare]

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,

AND, to find your AGI next year.

That's doubly true if you took a covid-19 related distribution in 2020.

[fanfare]

@JD_Messner 

Since you e-Filed, you can e-File 1040-X to correct this.

Last year you got one shot to e-File 1040-X.

I'd be surprised if you can e-File 1040-X more than once this year.

I suggest you wait until your 1040 is APPROVED, or April 15th, whichever comes first, to submit 1040-X.

[ Update; IRS will accept three e-Filed 1040-X forms. ]

[sillyleo8]

Never mind. I got the form to trigger. I had to delete something I had tried to do before the form was ready. 

[whiskey1031]

I entered the information just like you said and it told me to revist the 401K info and still is not adding the 1/3 additional income. What do I do now?

[Pack_Fan]

I was having the same problem. When you are entering the information from 2020-E you need to enter line 9 twice. I accidentally entered 0 for the first entry. After I corrected that it solved my problem.

[Howdy2]

Are we able to Efile with the form 8915F yet or do we have to wait until 3/31/2022?  

[DaveF1006]

No. You should be able to file with a 8915-F now !! 

@Howdy2 

[chee58]

Nope, you do not enter 0 for line 4 column b, the amount you list is the total amount you withdrew.