When will form 8915-E 2020 be available in turbo tax?

[tytybubby]

So i did mine last night but now im wondering if the program works correctly for a taxpayer in my case where i had the taxes taken out of the distrubtion right off the top as my employer required it. so there was a line to fill in taxes withheld and i entered that part..and i chose the 3 year spread becuase for some reason when i chose all this year my refund went down alot even though i wasnt bumped into a new bracket or something. im just curious i obvoiusly paid the taxes already so does the program figure that part in? and im assuming one of the  tax return forms (like the 1099)shows i had taxes withheld so the irs sees it? becuase turbotax did have me fill that line in on the 1099 section

[Matt94]

Do I go back to my 1099 then and change the taxable amount to 1/3 of the 11000 I took out? It really didn’t change much to reflect that I should only be liable tax wise for like 3600?

[lherran]

Happy to report that form 8915-E is now available in the desktop TT version as of the morning 0800 EST and is working as advertised. Thanks TT

[kenbsea]

also had it update on my desktop Deluxe edition and worked perfect.. good to see it now.

[rons1961]

I have updated my TurboTax Deluxe and still not seeing Form 8915-E

[macuser_22]

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@rons1961 wrote:

I have updated my TurboTax Deluxe and still not seeing Form 8915-E

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You will not "see" the form until it is created by entering a 1099-R and answering yes that is a COVID related distribution.     If you already entered a 1009-R, delete it and re-enter.

[kenbsea]

i was able to see that i had the form even prior to adding any 1099-R, after the update, i went to the Forms Icon and then chose Open Forms and searched for 8915 and it shows in the list here.. where it did not yesterday.  After i verified it was in the list, i was able to add my 1099-R and answer the additional question related to Covid

[macuser_22]

Online version do not have the forms mode.

[kenbsea]

correct, and you replied to Ron, who stated he updated his Deluxe, which implies he is using a downloaded / cd version not the online version, as the online version you don't have to update on the computer, that is done on the back end.

[IDF783]

Anyone else out there had an outstanding 401k loan prior to COVID and lost their job due to COVID and were unable to pay the remaining loan? I could not and mine was deemed a distribution. Was wondering if this could apply to the COVID distribution and spread out for 3 years? I'm hearing yes and maybe not. When I select 1 as my distribution code, it will spread out the distribution for 3 years. But if I select 1L (shown on my 1099-R) it won't. It would suck if there was no provision made for this due to the COVID disaster.

[macuser_22]

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@IDF783 wrote:

Anyone else out there had an outstanding 401k loan prior to COVID and lost their job due to COVID and were unable to pay the remaining loan? I could not and mine was deemed a distribution. Was wondering if this could apply to the COVID distribution and spread out for 3 years? I'm hearing yes and maybe not. When I select 1 as my distribution code, it will spread out the distribution for 3 years. But if I select 1L (shown on my 1099-R) it won't. It would suck if there was no provision made for this due to the COVID disaster.

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That is correct.   Code L is a "deemed distribution", not an actual distribution to *you* that you can pay back, it is a distribution to the plan administrator to pay the loan.    The IRS has said  that does not qualify as a COVID related distribution.

You might have been able to take a COVID related distribution from your plan to pay the loan off before the deemed distribution took place, but that is too late now since 2020 is over.

[smbosworth]

Any help would be appreciated.  I withdrew $22,723.14 from our 401K.  They withheld $2,272.31 for federal tax and $1,817.85 in state tax. I then paid back $15,000 during the year.

When I enter the 1099, Line 5 b calculates to $13,331 when I DON'T check the box to spread over 3 years and calculates tax based on that.  Shouldn't 5 b be $7,723 and the tax based on that?   I don't know where the $13,331 is coming from.

If I check the box for 3 years, then line 5b is zero and i get a substantial refund.

What am I missing?? 

Appreciate any insight.

[DoninGA]

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@smbosworth wrote:

Any help would be appreciated.  I withdrew $22,723.14 from our 401K.  They withheld $2,272.31 for federal tax and $1,817.85 in state tax. I then paid back $15,000 during the year.

When I enter the 1099, Line 5 b calculates to $13,331 when I DON'T check the box to spread over 3 years and calculates tax based on that.  Shouldn't 5 b be $7,723 and the tax based on that?   I don't know where the $13,331 is coming from.

If I check the box for 3 years, then line 5b is zero and i get a substantial refund.

What am I missing?? 

Appreciate any insight.

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Have no idea where that 13,331 came from.  If you spread the amount over 3 years 5b should be 0.  If you elect to pay the taxes in 2020 the amount on 5b should be 7,723

Delete the Form 1099-R and re-enter manually.

[DawnC]

Yes, it should say $7723 if not spreading the tax over 3 years.   If spreading the tax over three years, it would be 0 since you have already paid back the $15K.   I suggest deleting the 1099-R and carefully re-entering it.  

[macuser_22]

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@smbosworth wrote:

Any help would be appreciated.  I withdrew $22,723.14 from our 401K.  They withheld $2,272.31 for federal tax and $1,817.85 in state tax. I then paid back $15,000 during the year.

When I enter the 1099, Line 5 b calculates to $13,331 when I DON'T check the box to spread over 3 years and calculates tax based on that.  Shouldn't 5 b be $7,723 and the tax based on that?   I don't know where the $13,331 is coming from.

If I check the box for 3 years, then line 5b is zero and i get a substantial refund.

What am I missing?? 

Appreciate any insight.

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When I do it I get $7,732 on 5b. 

Spreading over 3 years means zero tax on line 5b, now since you already returned more than 1/3 and you get the tax withheld back as part of your refund.