tubotax 401k covid distribution

[Anonymous]

@KIPTURNQUIST 

what lack of information? scroll up.  the IRS hasn't released the necessary form yet.  It's all over this thread.   That is plenty of information. 

[macuser_22]

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@Anonymous wrote:

@KIPTURNQUIST 

what lack of information? scroll up.  the IRS hasn't released the necessary form yet.  It's all over this thread.   That is plenty of information. 

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See my post above yours - the 8915-e form was released by the IRS on 2/11 and TurboTax has a FAQ on that.

[Tom L]

Does anybody know when the 8915-E form will be available on turbo tax

[DoninGA]

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@Tom L wrote:

Does anybody know when the 8915-E form will be available on turbo tax

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The Form 8915-E is scheduled to be available in TurboTax on 02/24/2021

[indsen]

I am also interested to know on this topic

[LinaJ2020]

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty

@indsen

[Tom L]

Trying to find the 8915-e form on turbo but nothing popping up when trying to finish my 1099 early withdrawal. Also our covid withdrawal isn't on the list they have for withdrawal. My wife's parents were separated at nursing home as her mom got covid and later died her dad got diagnosed with stage 4 pancreatic cancer and we moved from small house to bigger house so we could hospice her dad and took the money out for down payment on the bigger house so he could live there and we could take care of him but how do we explain covid effected us 

[DawnC]

You don't have to explain how you were affected, you will just check the box that says ''was this distribution covid-related''.   Delete the 1099-R and re-enter it.   TurboTax will ask if it was covid related before it asks about any other type of exceptions.   You qualify if:

• You, your spouse, or your dependent are diagnosed with COVID-19
• You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
• You had work hours reduced to COVID-19
• You’re unable to work due to child care closure or hour reduction    @Tom L

[indsen]

Thank you for your response. Yes my distribution is COVID related distribution. I expect to file form 8915E-T and spread out the tax liability for 3 years.

[indsen]

Thank you. This is very helpful

[TroyPetry2020]

After completing the new COVID-19 distribution questions, I'm rightly given a checkbox that says "Pay tax on entire IRA, SEP, Simple, or Roth IRA distribution in 2020."  If I check this and move forward, my federal/state refund numbers do not change.  If I uncheck it and move forward, numbers don't change. Paying taxes on $12k in 3 years vs. 1 year should change my 2020 taxes.  is something not quite working yet?

[Irene2805]

If you want to split the taxes on the distribution over 3 years, do NOT check the box.  [See Screenshot below.]

You can check line 4b of your 1040.  If you do not check the box, you should see 1/3 of your IRA distribution on line 4b.

If you are using TurboTax Online, you can view the tax summary and preview your 1040 using these steps:

1. While in your return, click Tax Tools > Tools (in the black bar on the left of your screen). 
2. In the Tools Center window, click View Tax Summary.
3. In the black bar you can select Preview my 1040, as well as your state Tax Summary.

If you wish to preview your entire return, please follow these steps:

TurboTax Online

1. In the black bar at the left side of your screen, click on TaxTools > Print Center 
2. On the TurboTax Print Center screen, click Print, save or preview this year's return.
3. Mark the box(es) for your federal and/or state return.
4. In the next section, select Just my tax returns.
5. Click on the  View or print forms box. 
6. When the print screen comes up you can select the pages to be reviewed/printed.

TurboTax CD/Download

You can review your return by going into Forms Mode.  Please follow these steps:

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
2. In the Forms in My Return list on the left, click Form 1040.  The form will appear on the right side of the screen.
3. You can view the form on the screen or you can print a copy by clicking the Print box at the bottom of the screen.
4. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.  

1. @TroyPetry2020

[TroyPetry2020]

what you said is exactly what I would expect.  $12k on line 4b if I choose "pay all in 2020", and $4k if I don't check the box and let it spread $4k over 3 years  (and then 4b should show $4k).  However, when I uncheck the box and go to FORM VIEW, the $12k changes to $0.  Line 4B should be $12k (checked) or $4k (unchecked), but it is $12k (checked) and $0 (unchecked).  make sense why I think there is a bug in the computation?

[JM99801]

I just downloaded the new version.  We had multiple 1099-R distributions.  Only one is available for COVID relief based on maximum dollar amount ($100,000).  However when I flag one 1099-R distribution, it marks all of them as COVID distributions, and now I'm getting a refund which is clearly not at all correct.  I don't know how to fix.  So I too believe there is something not right in the computations.  Not sure what to do now.

[alexM12]

This post is very helpful, but I'm still unclear as to whether TurboTax has resolved the issue related to Covid distributions or not.  thank you