Repaid my CARES Act / Covid IRA Distribution in December 2022, but did not check box 9 or 17 on 2020 form, Now what??

[javigilante8243]

Question:  I took $20K out in Dec 2020 under the CARES Act and filed a 8915E form. I chose the taxable spread over 3 years. In the 3rd year (2022), I paid it all back in December 2022.  But, I did not check box 9 or 17 on the 2020 8915E form.  In turn, it shows I owe the third installment and I guess I would put in for a refund of taxes in 2023 filing???

How can I correct the 2022 8915-F form to show FULL repayment? It looks like I have to go in and amend 2020 and check box 9 or 17, not sure what to do with 2021 amending and claim repayment on 2022 form?   APPRECIATE the guidance!  Ty.

[DanaB27]

Yes, you will have to amend your 2020 and 2021 tax returns to carry back the repayment if you repay the full amount in 2022. Please see How do I amend my federal tax return for a prior year?

The repayment will be entered on the 2022 tax return:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R” 
3. Click on “Jump to 1099-R” 
4. If you do not have any 1099-R answer "No" to "Did you get a 1099-R in 2022?" (If you have any 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Your 1099-R Entries​​​​​​​” screen)
5. Answer "Yes" to the "Did you take a disaster distribution in prior years or repay…" screen
6. Answer "Yes" on the "Did you take a 2020 Qualified Disaster Distribution" screen
7.  Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.
8. Enter the repayment on the "Did you repay any 2020 Qualified Disaster Distribution in 2022?" screen

For the 2020 tax return:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
4.  On the "Your 1099-R Entries" screen click "edit" next to the Form 1099-R for the Covid distribution
5. Continue until the "Did you repay any of this distribution" screen and select "I repaid part of this distribution" and enter up to 1/3 of the distribution as repaid on the next screen

For the 2021 tax return:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Click "Continue" on the “Your 1099-R Entries​​​​​​​” screen
5. Answer "Yes" to the "Did you take a disaster distribution in prior years or repay…" screen
6. Answer "Yes" on the "Did you take a 2020 Qualified Disaster Distribution" screen
7.  Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.
8. Enter the up to 1/3 of the distribution as repayment on the "Did you repay any 2020 Qualified Disaster Distribution in 2022?" screen

[javigilante8243]

THANKS... DanaB27 for your guidance!

I was able to update my 2022 8915E, line 7 & 8 with $20K and it still shows the 1/3rd payment of $6,667 on line 2,3 & 5. But, zero on line 9.  Is that correct?? Should the $6,667 still be showing and am I paying tax on this as the third year?

Also, when I amend 2021 & 2020 in the correct sections, do I put the entire $20K or a third as you have indicted ($6,667.00) would be for me, each year?

Lastly, I thought for 2023 tax filing year, there would be a "refund" form that you would fill out to receive the three years of taxes you paid over the period.  Is that correct and does that exist for 2022?

Great direction!! and thanks...

[DanaB27 · Accepted solution]

No, you won't have to pay taxes on the 3rd portion on your 2022 tax return and you will get a refund on your 2020 and 2021 tax returns when you amend them.

Yes, $6,667 will show on lines 2,3, & 5. Line 9 taxable amount will be $0. Therefore, you won't pay any tax on it on your 2022 tax return.

You will enter 1/3 as repaid on your 2020 and 2021 amended tax returns (these amounts are carried back).

[javigilante8243]

Awesome... really appreciate the direction Dana. This helps me a lot.  I will amend 2020 and 2021 and wait for the amendments to be accepted and a refund issued later on in the year.

Quick side note:  I am assuming 2022 should be adjusted to the 1/3rd amount and not the $20K I have in there now.?