Paid back CARES act withdrawal before filing taxes in 2022

[Ombatay]

In 2020 I took out a cares act withdrawal from my 403b, and successfully paid it back in its entirety in 2022 and have yet to file my 2021 taxes. No repayments were made to the 403b prior to 2022. I did pay taxes on 1/3 of the withdrawal on my 2020 taxes and need to file an amended return.

Few questions:

1. Do I need to pay taxes on this withdrawal for my 2021 taxes and THEN file an amended return to get the tax refund back, or can I delete the withdrawal from my taxable income and not pay the taxes on it this year. Basically not file an 8915F as the money has been paid back in its entirety.

2. When filing an amended return, I'm a little confused. Do I just delete the cares act withdrawal from the taxable income and basically refile my taxes without the 8915E form? Or is there a separate form to specifically state its paid back.

3. Any option anywhere to e-File amended returns for 2020? The IRS says tax software can do it, but I can't find an option in turbotax.

Thanks!

[DanaB27]

1. You will enter the 1/3 distribution and then enter that you repaid the distribution:

Please follow these steps to report the 2nd portion of the COVID distribution or any repayment:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?" (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)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen
6. Follow the instructions on the screen to enter 1/3 of the distribution and the repayment (on the next screen).

Please verify that you check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here". Also, make sure you enter the amount from Form 8915-E, line 9 twice (if it was not from an IRA) or enter the amount from Form 8915-E, line 17 twice (if it was from an IRA). This amount should be 1/3 of your 2020 COVID distribution.

1/3 of the repayment will get carried forward to 2022 and 1/3 will get carried back to 2020.

2. You will enter the 1/3 of the repayment on the 2020 amended return:

1. Click on the "Search" on the top and type “1099-R”  
2. Click on “Jump to 1099-R” 
3. Click "Edit" on the “Your 1099-R Entries” screen
4. Continue through the questions until "Did you repay any of this distribution" and select "I repaid part of the distribution"
5. Enter the amount of repayment allocated to 2020 (1/3 of the repayment)

3. No, unfortunately TurboTax doesn't have the ability to e-file a 2020 amended return.

[Ombatay]

Great, thanks so much for the help.

I just wanted clarify. When I go through this with turbotax it specifically asks "Did you repay any 2020 qualified disaster distribution in 2021?".

Since I made the repayment in 2022 in full and no repayment was made in 2021, I still list this here, right? The repayment was just made and I haven't yet filed my amended 2020 return. Since my 2021 return will be e-filed and my amended 2020 will be paper/mailed, the 2021 return will process first and I didn't want the IRS to reject this over the discrepancy.

[mkowalc]

I think you have to file amended returns for 2020 the 'old fashioned' way via mail.   I don't think there is an e-file option in the 2021 TT software.

[DanaB27]

Yes, you will include any repayments you made before filing your 2021 return.

@Ombatay