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

[IDF783]

@SamS1  I did and I still can't get it spread out over 3 years.  For 1, yes, for 1L, no. Thanks.

[NashayLO]

@IDF783 Some users are reporting they aren’t being asked that second question. TurboTax is working to resolve this issue. For more information, please see this TurboTax FAQ, 8915-E interview error in TurboTax CD/Download

[robbyja]

I don't know why the plan admin won't change the 1099-R.

Perhaps you want to try them again explaining that you can't use the 8915-E with a code 1L.

I have had several experiences where "experts" tell me things that aren't true and a second call gets me to someone who actually does know.  

I suppose you could enter code 1 in TT or paper file your taxes with an 8915-E but if the IRS sees anything with code 1L, they will want to know why you used 8915-E.

It's explainable but in reality, the plan admin should issue a new 1099-R.

[kzigmant]

If you're still running into issues with this, Delete the 1099-R out of TurboTax, then go through Federal Review.  Running Review helps to make sure that the program fully reconciles the changes in the return.  Once you pass Review without ANY errors, go back to Income section to re-enter your 1099-R and make sure to answer ALL follow up questions.  This will resolve your issue. 

If all else fails, Call TurboTax and ask for Tax support to assist you.  There could be something else that may be causing your issue that they can determine and get resolved for you or they can also walk you through the process as well.  Give them a Call: [phone number removed]

[robbyja]

You said the plan admin said they can't change it "from 1L or 1."

To be clear, you want them to change it from a 1L (loan) to a 1 (early withdrawal).

If you don't repay the loan, it will eventually become a taxable event but I understand you want to get this done in 2020 to take advantage of the CARES Act.

I'm not a tax attorney (and don't work for TT) but if the plan admin really won't change it, I'd enter it as a 1 in TT and should the IRS question you, be ready to explain it.  Have documentation from the plan admin that they refused to change it from a 1L to a 1 even though you told them you can't repay it because of a job loss.

[IDF783]

@robbyja , yes I meant 1L to a 1. They are really adamant they could not change the code for me to a 1. I'm tempted to just submit it as a 1 (as you said) and my justification would be COVID-related. Tax advisor even said the IRS may understand my situation and may not even question my selction. Because I can still answer the question was it COVID-related in the software (and I tick yes) but since I input 1L, it won't reconstitute the income over 3 years. I'm still reporting income! Yes, I want to have less taxable income for 2020 and utilize the CARES Act provisions. Thanks.

[DawnC]

The program should allow you to treat these distributions as a covid-related distribution.   It is being worked on in TurboTax and will hopefully be updated soon.  There are a few situations in which TurboTax is still not allowing the covid relief to eligible distributions.   Hold tight for right now, don't go changing your forms as you don't want to make a mistake that is going to take more work to fix in the future.  Please sign up using the link found here to be notified of updates.   I realize that the issue in the article is regarding the penalty, but your issue is related and should be fixed at the same time.  @IDF783

[IDF783]

@DawnC . Thanks for the feedback, I just got off the phone with TT support with whom I also shared my screen. She was great. She said code of 1L won't be changed in the software (to allow spreading out income over 3 years) and the best course of action is to print out a paper version of 8915e and mail that with my 1099-R and a justification page to the IRS. I can do that and submit my 1099-R as a 1 code and file online or it may be safer to paper file everything together. She said usually the plan administrator can revise the code and send out a new 1099-R, but mine won't.

[DawnC]

I would not change the code because the IRS also has the exact same copy and if you submit your return and it doesn't match, it could cause a delay that will take longer than having to mail the return.  Since the filing deadline is still a month away, I would wait and see if TurboTax does in fact correct this.  I think the code on your 1099-R is correct, but TurboTax is not allowing the covid relief even though it should.   If the issue was just with folks that have the 1L, they probably would not correct it as there are not a lot of you out there.  However, this same issue is affecting other more common distribution codes as well and that is why I think they will get it corrected.   I am not promising they will, but I would definitely wait before mailing the return as that is a definite long delay if mailing.  As as I stated above, I would not change any code on any tax document sent to the IRS.    @IDF783

[IDF783]

@DawnC  She was advocating for me to do this under the auspices of form 8915e. By filling this out, that's the next best thing to have a revised 1099-R with a new distribution code of 1. My plan administrator said the same thing. He said there are many in my situation out there so do the 8915e is the way to go. Called a Jackson Hewitt tax advisor and she said the same. She even said the 1L code recognizes in their software to redistribute the income over 3 years as a COVID-related provision.

[tanialaguna]

MARCH 9TH and still no form!! Turbo tax when will it be available??????

[kzigmant]

If you're not receiving the Form 8915-E, then Delete your 1099-R out of TurboTax, then go through Federal Review.  Running Review helps to make sure that the program fully reconciles the changes in the return.  Once you pass Review without ANY errors, go back to Income section to re-enter your 1099-R, then make sure to answer ALL follow up questions.  This should resolve your issue.

If all else fails, then reach out to TurboTax support and ask for Tax support to assist you.  There could be something else that may be causing your issue that they can determine and get resolved for you or they can also walk you through the process as well.  More than likely, it's how the follow-up questions are being answered or information being reported from the 1099-R.

[ReneeM7122]

Form 8915-E is available.  It cannot be accessed directly by searching for it and jumping to the section.  When you complete the retirement section (1099-R) the interview will ask whether you took an early withdrawal due to COVID.  First it will ask if you were diagnosed with it, and if you answer no, it will then ask if your business suffered as a result of it.  If yes then it will tell you that you qualify.  When you view your tax return before filing, you can see the form completed.  The software will also ask you if you want to pay the tax due over three years or not.

Here is more information:

What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?

The CARES Act provides tax relief for up to $100,000 of COVID-19 related distributions from eligible retirement plans. So, if you, your spouse, your dependent, or a member of your household was impacted by the coronavirus and you withdrew from your retirement accounts in 2020 before the age of 59 ½, you may not have to pay the 10% early withdrawal penalty (or the 25% additional tax for SIMPLE IRAs).

When you enter your Form 1099-R, we’ll ask you a few questions to determine your eligibility for the exemption, and complete and include Form 8915-E in your return if you qualify.

To qualify for Form 8915-E and to be exempt from the early withdrawal penalty due to COVID-19, a few rules have to be met.

1. You have to be a qualified individual. To qualify, one of these must be true:

• You, your spouse, or your dependent were diagnosed with COVID-19
• You experienced adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19
• You experienced adverse financial consequences as a result of being unable to work due to lack of child care due to COVID-19, or
• You experienced adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to COVID-19

2. The withdrawal had to come from an eligible retirement plan, which could be any of the following:

• A qualified pension, profit-sharing, or stock bonus plan (including a 401(k))
• A qualified annuity plan
• A tax-sheltered annuity contract
• A governmental section 457 deferred compensation plan
• A traditional, SEP, SIMPLE, or Roth IRA

3. The distribution had to have been made in 2020 before December 31, 2020.

There is also a $100,000 distribution limit to the exemption. Any distributions over that amount, may be subject to the additional tax.

When do I have to pay taxes on COVID-19 related distributions?

@tanialaguna

[tanialaguna]

i spoke with someone from turbo tax- they just keep saying its not available.

has anyone who took out their retirement/401k and needs this form successfully filed it?? that is all i need to know... because if someone has sucessfully efiled then i am just getting the run around.

[DoninGA]

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@tanialaguna wrote:

i spoke with someone from turbo tax- they just keep saying its not available.

has anyone who took out their retirement/401k and needs this form successfully filed it?? that is all i need to know... because if someone has sucessfully efiled then i am just getting the run around.

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Read the answer on this thread directly below your post from @ReneeM7122