Need Help with 2020 Qualified Disaster Distribution Section

[dclynds]

Hello,

I took out the $100,000 disaster distribution from my 401k in 2020 due to coronavirus with the plan to pay taxes on it over 3 years. When I get to the part of TurboTax Home & Business where I need to enter my information from 2020's Form 8915E, it has a checkbox that says "If this was a Coronavirus-related distribution reported in 2020 check here." So, I checked the box. Then the next field says "2020 Form 8915E, line 4, column b (do not include coronavirus-related distributions)"

What am I supposed to do for this field? TurboTax says not to include coronavirus-related distributions, but my form 8915E has "100,000" in line 4, column b. So do I leave the field blank? Or do I enter "100,000"? So confusing.

2020 form 8915E shows 100,000 in line 4 column bBut note what TurboTax says inside the parentheses

[DanP0428]

Use 8915-E to fill in the 2021 information for 8915-F

[dclynds]

Sorry @DanP0428 @ but you missed my question. Read what's in the parentheses on my turbo tax screen. I included screenshots in my original post

[cctodd]

I'm also having this issue and I'm unclear how to proceed.

[dclynds]

Glad I'm not the only one. Hopefully we get an expert to help us out.

[DianeW777]

Review the steps and see the images below. The following steps should be used to enter your COVID qualifying distribution.  Do Not enter a FEMA code because this doesn't have one. You must have your Form 8915-E from your 2020 tax return.

1. Wages & Income > Retirement Plans and Social Security > 
2. IRA, 401(k), Pension Plan Withdrawals (1099-R) >  Start, Revisit or Update > Continue
3. Answer Yes  'Have you ever taken a disaster distribution before 2021?
4. Answer Yes, You had a 2020 Qualified Disaster Distribution
5. Complete the Information using your 2020 Tax return > Continue  (use either section but not both (Pension or IRA depending on your situation)
6. Enter any amount you may have  repaid in 2021, if applicable
7. Finish the entry for your spouse if applicable or just click Continue
8. Complete any additional retirement questions as you move through this section
9. Continue until you have finished and returned back to the Wages & Income Screen.
10. Do NOT stop and change sections without completing it.

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

Do not enter anything in the other boxes, leave them blank (empty).

Note: After completing the Wages & Income section you will land on a screen Did you take a disaster distribution at any time between 2018 and 2020?  Answer No since you have already completed the entering the 1/3 of the 2020 distribution.

[dclynds]

@DianeW777 Your step 10 says:

"Do NOT stop and change sections without completing it."

I did exactly what you said not to do and went to another section without fully completing the one I was working on. Additionally, I stopped my return partway through a section and saved and exited the software. What issue will that cause with my return and how do I remedy it?

Note that when I started my return in TurboTax a couple of weeks ago, I had everything lined out except for this section because TurboTax had not yet released the update necessary for the completion of this section. Therefore, this section was left only partially completed before I moved to another section and left partially completed when I saved and exited the software.

[MarilynG · Accepted solution]

From your screenshots, it looks like you have completed the drop-down entries correctly to generate Form 8915-F in your 2021 return, so you should be good to go!  

Basically, you are entering amounts from your 8915-E,  Line 9 from your 2020 return, which you have done. You are correct; don't enter the 100K anywhere. 

You should not have an 8915-E in your 2021 return.  If this comes up in Review, don't enter anything, and skip past it.

It's generally okay to skip around in sections while working in TurboTax, but you should complete a topic you are entering in first.

@dclynds
 

[renzielb1979]

@dclynds 

I'm doing my tax return quite late and I have the same exact question as you had, however, I didn't really find a resolution on the question you posted. Were you able to finally find the answer? I am really not able to determine how to answer or how to enter that line 8915E, line 4, column b (do not include coronavirus-related distributions)". Because I filed 8915E mainly because of the Coronavirus distribution I took but this caveat in a parenthesis for this year's tax return is so confusing. Should I enter what's on my prior year's 8915E, line 4 , column b or not ? It's conflicting. Turbo Tax seems to leave this blank for now. Please enlighten if anyone has an answer.