I had an early covid related distribution from my IRA in 2020 and repaid the entire amount in 2021. How do I report that on 2021 tax return?

[DanaB27]

Please be aware, Form 8915-F isn’t available yet, please see IRS forms availability table for TurboTax individual (personal) tax products for details on when the form will be available.

Once the section is available follow these steps to report any repayment:

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”
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

If you paid back the full amount then please remember to amend your 2020 tax return to get a refund on the taxes paid for the Covid distribution. Please see How do I amend my 2020 return?

For the Covid distribution, you were able to choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. Furthermore, 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

[Ccorrente]

Thank you for the information.  It is very helpful.  I did not get a 1099-R from Fidelity.  They only sent me a 5498.  Do I need to reach out to them for a 1099-R.  Also, when I looked at my 2020 return to amend in Turbo Tax, the reason for amending does not show an option for the repayment.  Will this show once, the 8915 is available?  This process is somewhat confusing and appreciate any insight you have.  I appreciate the help.  

[DanaB27]

No, you will not get Form 1099-R form Fidelity for the 2021 tax year.

To enter the repayment in your 2020 tax return go back to where you entered the Covid distribution in the retirement section:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R"
4. Click "Edit" next to the Covid distribution 1099-R
5. Continue through the questions until you get the option to enter the repayment.

[Ccorrente]

Hi - I am unable to find any place in this section that allows me to denote that I repaid the distribution despite following the great instructions.   

[DanaB27]

Please follow the below to enter your repayment:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click “Edit” next to the COVID Form 1099-R
4. Continue through the questions until you get to the “Did you repay any of this distribution?” screen and select “I repaid part of the distribution”
5. Enter the amount of repayment (up to the amount that was allocated to 2020)

If you are having trouble getting to the question then please make sure that you answered "Yes, this was withdrawn due to Covid-19" on the "Was this a withdrawal due to COVID-19" screen and that you answered all related questions to qualify for the COVID distribution.

[Edited 2/27/2022 | 4:50am PST]

[Ccorrente]

Thanks - that is for if you paid in that year (2020).  I did not repay until 2021.  I am trying to figure how amend my 2020 return.  Everything that I am reading says once you repay, I need to amend the 2020 tax return.  There is not an option when I select Amend Tax Return to note the repayment.  

[DanaB27]

Since you repaid all in 2021 you can amend and carry back part of the repaid amount to cancel out the amount included in your 2020 taxable income. Please select "I repaid part of the distribution" and enter the amount.

"If you make a repayment after the due date of your 2020 return (including extensions) but before the due date of your 2021 return (including extensions) and you have spread the income over 3 years, include the repayment on your 2021 Form 8915-E. However, you may file an amended Form 8915-E for 2020 if either of the following applies.

• You elected on 2020 Form 8915-E, lines 9 and 17, as applicable, to include all of your qualified 2020 disaster distributions in income in 2020 (instead of over 3 years).

• You have spread the income over 3 years, the amount of the repayment exceeds the amount of your qualified 2020 disaster distributions that are included in income on your 2021 Form 8915-E, and you choose to carry the excess back to 2020. See the example below.

Example.

You received a qualified 2020 disaster distribution in the amount of $90,000 in 2020. The distribution was made on October 16. You choose to spread the $90,000 over 3 years ($30,000 in income for 2020, 2021, and 2022). On November 19, 2021, you make a repayment of $45,000. For 2021, none of the qualified 2020 disaster distribution is included in income. The excess repayment of $15,000 ($45,000 - $30,000) can be carried back to 2020. Also, instead of carrying the excess repayment back to 2020, you can choose to carry it forward to 2022." (IRS).

Line 18 instructions "Repayments made after the due date of your 2020 return (including extensions) but before the due date of your 2021 return (including extensions) will generally be reported on your 2021 tax return if you elected to spread the income over 3 years. However, you may have to file an amended return in certain situations. See Amending Form 8915-E, earlier." (IRS)

[humphr35]

This is so complicated. Feels like an endless circle. 2020 amendment for 8915 only addresses repayments made in 2020 not 2021. Still can't figure out how to amend 2020 properly for a distribution repaid in 2021.

[Critter-3]

ALL repayments of the covid distribution, no matter what year they happened, must be reported on the 2020 amended return only.