When does TurboTax expect to have the IRS instructions related to disaster distributions for 2020 available? I keep getting a message saying I need to revisit later.

[DanaB27 · Accepted solution]

You can check IRS forms availability table for TurboTax individual (personal) tax products for when Form 8915-F will be available.

Once the section is available follow these steps to report any further tax to be paid or 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

Please be aware, 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 for more details.

From the IRS:

"If you repay a coronavirus-related distribution, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer so that you do not owe federal income tax on the distribution.

If, for example, you receive a coronavirus-related distribution in 2020, you choose to include the distribution amount in income over a 3-year period (2020, 2021, and 2022), and you choose to repay the full amount to an eligible retirement plan in 2022, you may file amended federal income tax returns for 2020 and 2021 to claim a refund of the tax attributable to the amount of the distribution that you included in income for those years, and you will not be required to include any amount in income in 2022."

[Mahkno99]

Really?  So Turbotax isn't going to address the issue, you're just going to send us to the IRS to get a form?  If Turbotax isn't a turnkey tax preparation program, then why bother with it?  I've been waiting with my taxes virtually done for over a week for a fix to this issue that's apparently not coming.

[Roxy73]

That's not what they are saying at all.  If you go to the link they provided me, you'll see that they expect to update the TurboTax software on 3/24 with the new distribution guidelines.  So he says after they do the update, we should be able to add our 1099-R into the program from 2020 and answer the questions that come up for it to apply the appropriate credits and calculations.

[DianeW777]

Great news! The IRS created new Form 8915-F to replace Form 8915-E.  This form will be used for anyone who chose to take a distribution from their retirement and spread the taxable amount over three years. This is the information relayed by our awesome Tax Expert @DanaB27 and @Roxy73.

It was recently (approximately 15 days) taken out of draft and finalized.  TurboTax has an available date of March 24, 2022.  Continue to check the availability date by using the link provided.

• When will federal forms be available?
• What is Form 8915-F?

When entering your 1099-R in TurboTax CD/Download, you’ll be asked Was this withdraw due to Covid-19? On the next screen, it should ask you Did you test positive for the coronavirus in 2020? However, some users are reporting they aren’t being asked that second question.

We’re working to resolve this issue. If you’d like to receive progress status updates, sign up here.

[Mahkno99]

My taxes were ready to go earlier this month.  The only delay was waiting on IRS to issue an updated From 8915-F, and the sense the program gave me was that would be a quick and easy resolution when it did come available.  I updated for changes when the form became available - it had absolutely no impact on my return - and then spent several additional hours running down and inputting additional information.  It was a very, very, very disappointing experience given that I had previously filed my taxes with TurboTax over multiple previous years.  I'm not sure what went wrong this year, but the experience was negative enough I'm going to be open to considering other products next year.  The $25 state e-filing fee is utter B.S too.