Disaster Distribution

[Sxiong1112]

Hello. I took out a disaster qualified distribution from my retirement plan in 2020 and opted to spread it out in 3 years. Last year I was able to easily file it but this year, when I select that it is a disaster qualified distribution, there is a drop down list but the coronavirus is not listed there. Just a bunch of states with misc disasters. It also asks for disaster start date and end date. How do we bypass this and can it be left blank? 

Thank you!

[JD_Messner]

There is a flaw in the software that I am trying to get to the attention of the developers.

To report the Disaster Distribution income, you need to enter the information under "Retirement Plans/ Social Security" .  Under the drop down for 1099-R, answer "no" to a 2021 distribution ----> continue, answer "Yes" to Have you ever taken a disaster distribution before 2021? -----> continue,  answer yes to Did you take a 2020 Qualified Disaster Distribution?, then check the box next to If this was a Coronavirus-related distribution reported in 2020 check here.

The problem is, the software is NOT using the questionnaire to populate the form 8915-F, so it calculating the 1/3 total distribution and adding it to your 2021 income, nor is it adding the tax due on the income to your tax bill.

[Cynthiad66]

No.  It is required to answer the question.  However, the form needed to properly report the second year of the distribution was just finalized by the IRS today.  You are seeing all of this information because the form is not ready yet in TurboTax.  It will now take TurboTax a few days to program into the system then get it approved by the IRS before the form will work accurately.  Please allow a few days then check back to file your return as seamlessly as 2020.

Keep in mind:

• It takes some time to incorporate state forms into TurboTax. While they may be available from your state on a given date, we need a few days to make the forms available for use in TurboTax.
• When you locate your form or schedule, there will be dates for both Print and (depending on the state and the form) E-file availability. If the E-file form is listed as unsupported, the form must be printed and you'll need to mail your return.
• Forms and schedules missing from the table aren't supported in TurboTax.

[JD_Messner]

Your software is allowing customers to fill out the disaster distribution questionnaire, complete their filing, then submit for an error check and file their return even though the income is not being reported on the return.  It is NOT generating an 8915-F

[JamesG1]

I not know what kind of distribution you are reporting.

I am reporting Qualified 2020 Disaster Distributions From Retirement Plans (Other than IRAs) in Part II from the 2020 8915-E.and:

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.

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.
   

[Sxiong1112]

Thanks for the response. I selected all

the coronavirus options however under the drop down list of “disaster names” coronavirus was not on there. I will wait a few days for the bugs to be worked out and come back to file. 

[pjpbydasea]

will the 2021 tax software be updated soon to correct the issue reported in the software - 

The software tells me that "I can't file yet due to disaster tax relief laws being passed by Congress" - when the IRS website clearly tells us to file 8915-F - looks like a bug in the software - PLEASE ADVISE - is there a work around to update the form manually if the questionnaire can't handle it -  I would NOT like to file an extended return when it appears that there is no "real issue" - just the software..

Thank you

[JamesG1]

I do not know what kind of distribution you are reporting.  

I am able to  report Qualified 2020 Disaster Distributions From Retirement Plans (Other than IRAs) in Part II from the 2020 8915-E.and:

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.

Disaster distributions taken in 2017, 2018 and 2019 may be available on March 31.

[pjpbydasea]

Tax year 2020 - I took a qualified disaster distribution for a part of my IRA 2020 distribution to be split over 3 years - 1/3 was applied in 2020 taxes and I expected to take the 2nd 1/3 in 2021 (I also took a new IRA distribution in 2021 (not a qualified disaster distribution) 

the software did not generate a 8815-F for the 2nd third  of the 2020 - please advise

is there a time and number that I can speak to an expert - live?

[JD_Messner]

I ran into the same problem last week as the form and the integration in the software are VERY POORLY done.

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 the total amount of the withdrawal from 2020

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

This will create the 8915-F and add the appropriate tax to your bill. 

[Dave_T]

For me it seemed to fill in the 8915-F form automatically. In my case I did not repay any of the distribution so I it added the tax on the 2nd distribution to what I owe. But it still stops me at the end with this same message.

[JamesG1]

IRS Form 8915-F information can be entered at the screen Did you take a 2020 Qualified Disaster Distribution?  I was able to report Qualified 2020 Disaster Distributions from Part II and Part III from the 2020 8915-E by following these steps.

• Go to Federal / Wages & Income / Retirement Plans and Social Security / I'll choose what I work on / IRA, 401(k), Pension Plan Withdrawals (1099-R).
• Click Start / Revisit to the right.
• At the screen Did you receive any 1099-R forms? select No.
• At the screen Have you ever taken a disaster distribution before 2021?, Click Yes.
• At the screen Did you take a 2020 Qualified Disaster Distribution?, enter 8915F and 8915E information.

I also reported that:

• I did not repay any 2020 Qualified Disaster Distribution in 2021.
• I did not report a disaster distribution in 2017, 2018 or 2019.

You may view the distributions on the 2021 Federal 1040 tax return at Tax Tools / Tools / View Tax Summary / Preview my 1040.  You may view Form 8915-F at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

Form 8915-F Part II distributions may be found on line 5b of the 2021 Federal 1040 tax return.  The distribution is not reflected in box 5a.  See entries for Part II of Form 8915-F on lines 12, 13 and 15.

Form 8915-F Part III distributions may be found on line 4b of the 2021 Federal 1040 tax return.  The distribution is not reflected in box 4a.  See entries for Part III of Form 8915-F on lines 23, 24 and 26.

Live Tax Advice is available by clicking the upper right hand corner of the screen.  Additional payment may be required.

@pjpbydasea

[sims473]

It’s stopping me at disaster ending date. No idea what to input but it wants a date.

[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)

@sims473

[sims473]

I’m close but not sure where I’m tripping up. Mine is from a 401k so the taxable amount I have in boxes as shown in pic.