When will Form 8915-E be available? TurboTax indicates "IRS instructions related to disaster distributions weren't ready in time for this release." It's been weeks now.

[macuser_22]

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@DoninGA wrote:

@nolanwittrock Contact TurboTax support and tell them that your online return is giving incorrect amounts on your Form 1040 due to the Form 8915-E which was just released yesterday and you need to clear your return and start over but you have already registered your edition.  They should be able to help you with getting the return cleared.

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

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@DoninGA Did you do in online - I did it on desktop?

@nolanwittrock  You should be able to completely delete the 1099-R without clearing everything.

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/0...

[benihana740]

@DoninGA 

Same issue here in Ohio using premier online. Calculating $0 when I opt to split repayment of Covid-Roth withdrawals in three years. It is a programming error.

I may register another account to see if there is any change, but I don’t see how/why starting fresh would change anything.

[DoninGA]

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@macuser_22 wrote:

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@DoninGA wrote:

@nolanwittrock Contact TurboTax support and tell them that your online return is giving incorrect amounts on your Form 1040 due to the Form 8915-E which was just released yesterday and you need to clear your return and start over but you have already registered your edition.  They should be able to help you with getting the return cleared.

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

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@DoninGA Did you do in online - I did it on desktop?

@nolanwittrock  You should be able to completely delete the 1099-R without clearing everything.

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/0...

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Did it using desktop.  The OP has said that he has already deleted and re-entered the 1099-R several times and keeps getting the same result, that is why I recommended clearing and starting over.

[DoninGA]

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@benihana740 wrote:

@DoninGA 

Same issue here in Ohio using premier online. Calculating $0 when I opt to split repayment of Covid-Roth withdrawals in three years. It is a programming error.

I may register another account to see if there is any change, but I don’t see how/why starting fresh would change anything.

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If you paid back 1/3 of the distribution or more then the taxable amount of the distribution on Form 1040 will be 0.  The balance will be carried to the following tax years.

[nolanwittrock]

@DoninGA 

@macuser_22 

Good news bad news!

I discovered the source of the issue.  But I don't know how to fix it.

The issue is caused by the interaction between my Covid Withdrawal, which was taken from my Traditional IRA, and my contribution to that same Traditional IRA.  I contributed $6,000 to my Trad IRA in 2020 (early in the year, long before I took the Covid Withdrawal).

In TurboTax, I deleted my Trad IRA Contribution in the deductions section.  As soon as I did that, the Covid Withdrawal numbers were corrected and it shows that I owe $0 as a taxable distribution on my 1040.

However, as soon as I add back in my $6000 Trad IRA contribution it messes up the Covid Withdrawal numbers again.

This explains where that $92,008 number that I mentioned earlier is coming from.  When I put in my Trad IRA contribution, it is subtracting $6,000 from $98,008 (my Covid withdrawal amount) and saying that $92,008 is my taxable amount.

Not sure how to fix this, as I obviously need to report my Trad IRA contribution.

[macuser_22]

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@nolanwittrock wrote:

@DoninGA 

@macuser_22 

Good news bad news!

I discovered the source of the issue.  But I don't know how to fix it.

The issue is caused by the interaction between my Covid Withdrawal, which was taken from my Traditional IRA, and my contribution to that same Traditional IRA.  I contributed $6,000 to my Trad IRA in 2020 (early in the year, long before I took the Covid Withdrawal).

In TurboTax, I deleted my Trad IRA Contribution in the deductions section.  As soon as I did that, the Covid Withdrawal numbers were corrected and it shows that I owe $0 as a taxable distribution on my 1040.

However, as soon as I add back in my $6000 Trad IRA contribution it messes up the Covid Withdrawal numbers again.

This explains where that $92,008 number that I mentioned earlier is coming from.  When I put in my Trad IRA contribution, it is subtracting $6,000 from $98,008 (my Covid withdrawal amount) and saying that $92,008 is my taxable amount.

Not sure how to fix this, as I obviously need to report my Trad IRA contribution.

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Exactly where are you seeing that tax - 1040 line 4b or your total tax?

If the IRA contribution is adding to your total tax that would indicate that you did not have enough taxable compensation (money that you worked for) to make a contribution and you are getting a penalty for an excess contribution.

An IRA contribution is not related to a 1099-R unless you made it a non-deductible contribution and used it to reduce the taxable amount.

[nolanwittrock]

@macuser_22 

The $92,008 number is on 1040 line 4b.

[macuser_22]

I think I see a problem!

I will assume that your IRA contribution was either non-deductible or you have other "basis" in the IRA that requires a 8606 form.

There is an interaction between the 8606 and the 8915-E forms.    The 8915-E must have the 8606 line 15b value in order to compute the tax, otherwise it reverts to the 8606 line 15a value that can be a very large number. 

The 8606 line 15b is a *USER* entered part of line 15s that is COVID related.

The interview has no questions asking you to enter that amount.    However, the missing entry on the 8606 is flagged as an error so when the federal error check is run, it finds the error and asks for the amount.   I just entered the amount that was taken as the COVID distribution and the tax dropped to zero.

[macuser_22]

My above answer is incorrect.  The box 15b cannot be more than 15a or it results in a new error.    You would either need to print all forms and worksheets in the online version to get the box 15a amount to enter or use the forms mode in the desktop version to view the 8606 and make the line 15b entry.

@dmertz   Just to alert you to this issue.

[benihana740]

I didn‘t pay back any of it. Software is bugged out.

[nolanwittrock]

@macuser_22 

When I put in my IRA contribution, it does create form 8606 for a nondeductible IRA on my return.  However, I have no idea why my contribution would be nondeductible...

[macuser_22]

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@nolanwittrock wrote:

@macuser_22 

When I put in my IRA contribution, it does create form 8606 for a nondeductible IRA on my return.  However, I have no idea why my contribution would be nondeductible...

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Two reasons, 1) you marked it as non-deductible in the contribution interview, or 2) You have a retirement plan at work and your MAGI is too high to deduct so it can only be non-deductible.

See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

[macuser_22]

Make the 8606 line 15b the same as 15a and it should fix your problem.

[nolanwittrock]

@macuser_22 

Neither of those reasons are true for me. I doubled checked both. I'm definitely well aware of the MAGI limits.

I think this might be where the glitch is in TurboTax's system....it thinks my MAGI is too high because it is counting the IRA withdrawal.

I eventually get this screen:

Some of Your IRA Contribution Isn't Deductible

Traditional IRAs offer some great benefits, but they have restrictions too.

***** can't deduct contributions to a traditional IRA if ***** is covered by a retirement plan at work and your modified adjusted gross income (AGI) is more than $206,000.

Based on the information you've entered so far, ***** is covered by a retirement plan at work and your modified AGI is $214,561. You can't deduct *****'s $6,000 contribution.

However, our MAGI is definitely NOT $214,561. That number is inflated by adding in the entire Covid withdrawal. But Turbotax's system automatically adding that withdrawal to our income when it shouldn't.

[macuser_22]

Yep - it's really broken.   It is adding the 8606 line 15a amount to the MAGI improperly.