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

[cjob]

@dmarqtax 

The only thing I didn't like about that method of getting past the TT glitch was that my form reflected entries in Part I-Disaster FEMA number as well as field C1.  My tax liability and the rest of the form was correct and at the end of the day any penalties, etc. are assessed based on tax due.  So, while it is not a technically correct filing, I didn't see a big downside.   At the worst I think you could get an inquiry letter regarding it and the situation is easily explained.  But I have my doubts even that would happen.  IRS is overwhelmed right now.  Some data point may carryover to next year's return in TT that you may have to address then.  Personally, I wouldn't stress it.  And remember, tax advice is only worth what you pay for it (lol).  Do not construe this as professional advice of any kind.  Just my opinion on the matter.

[cjob]

@bcz1 

Unfortunately, no.  When tax is withheld, it is applied to the year it is withheld.  So, in last year's return you should have included 100% of the tax withheld and either 1/3 or 100% of the income from the withdrawal (depending on what your state requires).  

[netbaby007]

So I guess that it will show on the 2020 tax form what we had to do with state on that end? 

[Jenv1]

So only the desktop version was updated this week? When will the online version be available? I didn't receive a 1099 this year, do I just use last years? This is so frustrating!!!

[netbaby007]

I just did mine yesterday online. Check it out today. 

[bcz1]

Hi, thanks for the reply. So let me make sure I understand what you are saying….We received 2 separate 1099-R’s for 2020. Mine had 0 state tax withheld, hers had appx 2k withheld so her gross distribution was 25k net  we received was 23k. I entered the numbers in TurboTax exactly as they were on the 1099 and elected the 3 year repayment. Federally, 1/3 of the total income has been taxed correctly but due to the increase in taxable income I had to pay   Last year the state recognized that the total amount of liability for her distribution had been paid and we received money back from the state. This year  it seems that the state is not recognizing that her distribution paid tax on the whole 25k during the withdrawal year. I don’t think there should be any more liability on her distribution. It feels as if I’m being taxed twice on the same withdrawal. Am I thinking about this the wrong way? 

[cjob]

@bcz1 

Yes.  You are thinking about it the wrong way.  The refund you received last year related (at least in part) to the tax liability you would incur in years 2 and 3 for the withdrawal.  100% of tax withheld is applied in year withheld.  Normally 100% of the tax on the withdrawal would have had to have been paid also.  The Cares Act permitted us several options.  We could pay the withdrawal back; we could pay the tax liability year 1 or we could opt to spread the liability over 3 years.

[bcz1]

@cjob 

Ok, thanks. Appreciate your time!

[susiedoody]

@cjob Thats exactly how I felt about it..  All the numbers are correct, only one box not checked right, and maybe some extra numbers on the worksheet.  I am praying it all works out.  

[susiedoody]

And for everyone's information, I bought the CD/Download version, I was not using the online version, and I have been told by many people that that is the better way to go.  For future reference, in case anyone still wants to use TT after all this mess.  LOL.  

[Goingpostal]

Thanks so much. You have helped me very much.

[netbaby007]

Actually you would have paid the first installment of the 3 years last year, the 2nd this year and then next year it will be the final year. 

[talltodd]

You would want to take the full tax liability in 1 year if you had state tax withheld to avoid the issue. 

[JJOTOOLE]

Is 8515-F available to tax professionals yet? I'm not sure what brand mine uses but as of 2 weeks ago it was still not available. This is ridiculous it's not that complicated.

[bcz1]

@talltodd 

Youre right. That would have been ideal but I couldnt afford the full tax liability in year 1. 

I initially didn’t want to have any state tax removed at the time of the distribution but due to an ill informed agent my wife and I find ourselves here.  I told the rep that the state doesn’t mandate withholding because I had already taken a distribution without state taxes withheld but they would not complete the process without the state taxes being removed.