When will the 2021 8915-f form be available on Turbo Tax to efile?

[Anonymous]

@fanfare - lol, way more succinct than what I said.  However I would recommend paying it off next year since inflation is at 40 year record highs.

[cyndee5101]

Yes... I think I will definitely do that!  LOL

[Anonymous]

@cyndee5101  - Yeah, In your situation if you are worried you might spend it, I would just put it in a 12 month CD that will mature at tax filing time next year.  The ONLY reason to pay it early would be if you think it might not be available when you need it for whatever reason.

But its not as hard to calculate as people think, just take your tax bracket on AGI and multiply that by whatever you haven't paid back yet.

[cyndee5101]

good idea... I just didn't want that 1/3 of taxes hanging over my head for next year... that's the only reason why I wanted to see if I could claim the rest of that distribution this year... but it's fine.

[cyndee5101]

@Anonymous I was thinking.... would it make sense if I made an estimated tax payment for next year?  So when you said that if my total tax is $17K what does that mean?  total taxes that was taken out of our wages?  or total tax that we owe on the $33K this year?  And then you said to send in an extra $7K and have them apply it for next year... so that would be an estimated tax payment?  How do I have Turbo Tax do that?

[Anonymous]

@cyndee5101 - the only reason to do it now is to get it off your plate, and make sure you don't use the money for something else.  Economically you want inflation to whittle down your debt.

Definitely not total taxes withheld from wages.  Last year it was 1040 Line 16 "Tax."  And your tax rate was base on 1040 Line 11 "Adjusted Gross Income"

You can do it as an overpayment or as an estimated payment.  But you don't need TurboTax for that.  In fact you can just go to the IRS website and make an estimated payment for TY 2022 online.  No form, nothing AND they will have a record of it in your ledger next year that you can retrieve from them if you forget how much (but don't forget lol.)

OK, so your marginal tax rate is based on your AGI.  So an easy but not so accurate way would be to see what your marginal tax rate is this year by looking at your AGI on this TurboTax return, then multiply that by the remainder you need to pay next year.

Since I am retired my tax rate is 15%, I have $33,000 of CARES distribution income to carry forward to the last TY of 2022.  I send in 33000 x 0.15 extra this year, either as an overpayment or as an Estimated Payment.

Yours might be 20000 x 0.24 or 25000 x 0.22 or whatever

[cyndee5101]

@Anonymous Turbo Tax actually told me to repay the withdrawal to the 401K.... so lets say I wanted to pay my 401K $5,000.... how do I subtract that from the $33K that I owe this year and next year?  or would that repayment go towards next year's taxes?

I'm actually in the 24% tax bracket... so I would do .24 x 33,000 or .24 x 100,000?

[Anonymous]

.24 x 33000 - you can notionally visualize this as 3 equal distributions each year.

As far as repayment - you just do it, there is no paper trail as far as entering it into Turbo Tax.  You will get a 5958 from your institution which is not used for filing taxes.

So if you have $30,000 to carry forward to the last year, and you make a rollover cares act contribution (the name of repayment) of $5000, then you make an estimated payment this year of 25000 x 0.24

[Anonymous]

I mean that's what this Form 8915-F that we are waiting for is all about.  To show the IRS how much you took out, how much your re-contributed, and how much tax you paid for each year of the 3 year carry forward period.

[cyndee5101]

@Anonymous OK... so lets say I make a $5,000 repayment now.... today.... that will be deducted off the $33K NEXT YEAR... not this year right?  So I will still need to pay the taxes for this year on the $33K... but then I can estimate the tax next year and instead of paying the $33K next year I make an estimated tax payment of $28K?

[Anonymous]

You could put $5000 for TY 2021 or TY 2022 until 18 April, your call.  After 18 April it will be for 2022.  Just depends how you designate it when you contribute

[cyndee5101]

oh... that's cool... and then I would just deduct that amount from the $33K this year .... and would I still be able to make an estimated payment for next year on the last of the $33K?

[Anonymous]

Yes, if that fits your individual needs.

[cyndee5101]

so if I do that now for TY 2021 it will deduct it from the $33K for this year.... and can I still make an estimated payment for TY 2022 based on the $33K for next year?

[Anonymous]

Yes, you got it!