Will Turbo Tax be providing the e-fileable PDF General Dependency Stmt of Form 8915-E, released by IRS, as per IRS statement on Feb. 8 - Alternative File Methods? When?

[bomo817]

Just spent over an hour on the phone with a live tax expert - the 8915E is not yet available for "prime time".  The issue we discovered is the program is NOT recognizing the correct COVID distribution amount and reflecting that amount on the Form 8606, Line 15b.  Result is taxable income is overstated by that amount.  Tax expert advised that programming may take another couple of days...the saga continues!

[coechambers1]

Do you have any idea when it will be available for the Desktop version to E-File?

[JeanneLO]

TurboTax has worked hard with the IRS to be able to e-file this 8915-E form.  Since this will require programming adjustments for both the IRS and TurboTax, it will be a few weeks before these changes are made.  If you wish to file this form, you have the following options:

1. Mail in your return now and not wait until the form is available to e-file.
2. E-file your return without the form, and then file an amended return with the form attached to it (amended returns now also can be e-filed for greater convenience).
3. Wait until the form is available in TurboTax and e-file your entire return at once.

Feel free to reach out if you have any questions on how to do this.

@coechambers1

[ajd878787]

What is the purpose of the dates then, like 02/24/2021 & 02/25/2021 & now 02/26/2021 ? These dates have been communicated as dates by when we can e-file with form 8915-e. Your statement above mentions we are weeks away from that actually being the case ? Which is it ? 

[rimoore]

You've had plenty to time to make this adjustment. I'm the software business and don't buy this lame reasoning. It's not rocket science.

[rimoore]

Exactly. Don't put out dates you can't meet. 

[Kat]

Gosh, I almost hate to step in here, but.... the most current info shows that Form 8915-E will be "live" on 2/26/2021.  Here's a FAQ that allows you to sign up for notification when this is ready to roll.  So sorry for all the herky-jerky dates.  And thanks for your patience.

Why am I getting a 10% penalty on my 1099-R when I withdrew funds during COVID? 

[bomo817]

Hi Kat,

Thank you for this latest update, and I hope it proves to be accurate.  After my online call with a live tax expert today, I was advised that the programming of the "final/workable" Form 8915E is ongoing, and the 2/25 date was an estimate.  She also advised me that she would check back with me on Monday, 3/1/2021.  She also confirmed that she was obtaining the same results on her desk top version as my online problem - i.e., the prorated taxable income over a 3 year period for any COVID related distribution was not being reflected correctly on the Form 8606, Line 15b.  I plan to check back in over the next few days to learn of any progress that might have been made to resolve the issue.

[Kat]

@bomo817 Thanks for filling in some of the blanks for users.  Hope that the 2/26/2021 date is solid.  Lots of folks are looking for that form and accurate calculations.  

[lherran]

Happy to report that form 8915-E is now available in the desktop TT version as of the morning 0800 EST and is working as advertised. Thanks TT

[Matt94]

I saw it also. Question on the spreading of the 3 years for reporting. I took 11000 I put the full amount into the 1099R do I go back and manually change the taxable amount then on the box below die to qualifying? I am assuming yes because it didn’t change my numbers a ton for the positive. So I would be tax obligated for 3700 ish?

[Matt94]

Do we manually put in the amount on our 1099R that is taxable to spread out the money we took? For example I took 11,200 and I put in the full amount. I don’t see where it split up the tax liability. Is that on me to go in and change on the 1099R?

[DoninGA]

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@Matt94 wrote:

Do we manually put in the amount on our 1099R that is taxable to spread out the money we took? For example I took 11,200 and I put in the full amount. I don’t see where it split up the tax liability. Is that on me to go in and change on the 1099R?

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You enter the Form 1099-R as received.  If your distribution was Covid-19 related then you answer the questions presented concerning the distribution.  The program will ask if want to pay tax on the entire distribution in 2020.  If you do not then do not check the box when the question is asked.  One-third of the taxable distribution will be entered on the federal tax return Form 1040 on either Line 4b or 5b as taxable income depending on whether the distribution was from an IRA or a Pension plan.

[Matt94]

Ok thank you I thought I did that, but it did not disperse the money. It only took away the 10 percent liability. Thanks I will try again. 

[bomo817]

i cannot speak to the desk top version, as I am only using Turbo online.  The latest post that the 1/3 taxable will be reported is still not working on the online version.  There's a program problem when your total IRA distribution is made  up of regular distribution and COVID related distribution...the amount reported as COVID doesn't carry over to the Form 8606 (if you are required to file that form) and therefore taxable income is overstated.  My conversation with the Turbo online tax expert confirmed this, and I was advised that it was reported and is being researched/corrected.  Just don't know when.  Good news is that 401K COVID related distributions appear to be properly flowing through the Form 8915E and 1/3 taxable is being computed if elected - and any re-deposits are also being reflected.  But 401K distributions are NOT related to Form 8606.

Hope this helps.