When will form 8915-E be update and available for 2021 tax year?

[Kryptonian]

I see now. I didn't enter the same amount in both boxes as @DoninGA  suggested. Many thanks. Have a good weekend.

[vinay007]

My taxable income is not increasing after adding the 2020 Corona virus distribution in turbot tax. Is this correct? 

Not sure what I am doing wrong. 

[DoninGA]

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@vinay007 wrote:

My taxable income is not increasing after adding the 2020 Corona virus distribution in turbot tax. Is this correct? 

Not sure what I am doing wrong. 

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You have to enter the 2nd year of the 2020 distribution in both boxes for the type of distribution received in 2020.

If the 2020 distribution was from an account that was Not an IRA

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9

2020 Form 8915E, line 9, if you checked the box on that line, enter 0

2020 Form 8915E Line 9 

If the 2020 distribution was from an IRA account

Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17

2020 Form 8915E, line 17, if you checked the box on that line, enter 0

2020 Form 8915E Line 17 

Do not enter anything in the other boxes, leave them blank (empty)

The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA

[Melissa4444]

This was my issue and seems like everyone is having the same issue.

The line that was if the check box is enter zero, well I'd that line has an amount you need to add it there. both lines needs the amount. I believe is line 9. Once you do that then line 5b 8n your 1040 will be updated.

Hope that helps

[vinay007]

Thank you. That worked. The wording is wrong. You will have to enter line 9, two time in TurboTax if you have distributed it for three years

[Maryann809]

That did it!!!  It finally updates the taxable income. 

[Melissa4444]

@vinay007 

The language is just confusing!

I spoke to a tax expert! I had questioned the language and after a while  I was I was referred to one.  I'm glad I listened to my instincts!

[idathunkit]

I'm trying to complete the section for 1099-R's and it was withdrawn for a Qualified Disaster, but one that happened in 2021...the Texas Winter Storm in February.  I've found specific information from accountants online that state this disaster qualifies for the 10% penalty waiver but on TurboTax there is only a choice of a 2019 or a 2020 Qualified Disaster.  I chose the 2020 button and then filled in the correct dates on the form.  Does anyone have any other information about this specific situation?

https://atchleycpas.com/blog/f/ira-10%25-penalty-waiver-extended-expanded

[Melissa4444]

I thought that the first question ask did you have a distribution in 2021? Wouldn't you answer yes here and then your situation should apply.

[fanfare]

The way Form 8915-F is currently set up, you can only report a 2020 disaster distribution.

When the form was approved, legislation was pending in Congress that would elevate certain
2021 disasters and the 2020 Washington
(4593-DR-WA) disaster to the status of qualified disasters. Go to Recent Developments under IRS.gov/Form8915F to see whether that legislation was enacted.

There you will find Recent Developments : None.

[idathunkit]

I copied this from a CPA website - can anyone give me corroboration from any other accountants?

Effective under the Consolidated Appropriations Act (CAA) signed by President Trump on December 27, 2020, the IRA 10% early withdrawal penalty waiver on Qualified Disaster Distributions was allowed for 180 days from enactment of the bill (6/25/21). The tax-favored withdrawal from IRAs applies to distributions made by individuals who are impacted within any type of federally declared disaster area between January 1, 2020, and 60 days after the enactment of the bill (approximately February 25, 2021). The Act specifically excludes COVID-19 as a qualified disaster. 

What this means specifically for our Texas-based residents, is that the Texas Freeze of 2021 qualifies you to be eligible for the tax-favored withdrawals from retirement plans as President Biden approved the disaster declaration as of February 20, 2021. Therefore, along with the waiver of the 10% early withdrawal penalty on up to $100,000 of qualified distributions, the CAA also allows for the repayment of the funds from the IRA within a 3 year period to be treated similar to a 60-day trustee to trustee transfer. This additional benefit provides taxpayers the option of receiving a tax refund on the ordinary income taxes that are paid on the early withdrawal distributions from their traditional IRAs if they choose to recontribute the funds within the required timeline. 

[RobertB4444]

It's true.  If you took out money from your retirement plan because of the freeze in Texas in 2021 then you can use form 8915-F to avoid paying the 10% penalty for early withdrawal.  You also have up to three years from the date of the withdrawal to pay the money back into your IRA and receive a refund of the regular income taxes that were a result of the withdrawal.

Here is the IRS guidance on form 8915-F

[fanfare]

@RobertB4444 

" then you can use form 8915-F to avoid paying the 10% penalty for early withdrawal."

Go right ahead.

You will find out that the tax software won't let you do it.

Form 8915-F only works on 2020 disaster distributions.

This is corroborated by the very IRS instructions you posted.

[fanfare]

In congressional hearings Thursday, some Senator and IRS Commissioner Rettig were bemoaning the fact that there are no 2021 qualified disaster designations.

[Kryptonian]

They can always retroactively do something for 2021, but they chose not to. And we are close to 4/15. No miracles