Spreading a cares act withdrawal over 3 years-year 2 question

[AlanP64]

Okay, this is likely a really a dumb question but currently I am confused. I took a cares act withdrawal from my 401k in December 2020. When I filed my taxes last January I elected to spread it out over 3 years. Once TurboTax got everything loaded into the software, I had no problems getting everything done. Now my question is this. In year 2 how do you handle the second of the three withdrawal reportings? Do we get another 1099-r from the financial institution (Fidelity), do you just automatically use the same amount as you did the first year? I have taken a look at filing my taxes. Once I get to the screen of adding the withdrawal amount or a 1099-r, it just gives that message that they are waiting for guidance from the IRS and I will need to revisit this later. so, is it safe to assume they are just waiting for the IRS to release some mew 8915 form or instruction?

[MaryK4 · Accepted solution]

A very good question, actually.  Yes, the IRS needs to finalize Form 8915-F then allow time for the programmers to implement before the section will work.  You will not receive another 1099-R and TurboTax will transfer the information from 2020.

If you took a Coronavirus-related disaster payment in 2020, you have the option of spreading the income over three years to spread the tax due.  There is no additional penalty for early withdrawal and you do have the option to repay some or all of it within the three years.

[AlanP64]

Thank you very much! 

[gttelco1226]

Thank you for that question but I don't understand the answer.  Do we wait to file until the update?  What do we do?  I contacted my very popular institution and they said unbelievably said they do not know. Thank you 

[MayaD]

Yes, you need to wait until Form 8915-F, Qualified Disaster Retirement Plan Distributions and Retirements is available. Once the form is finalized by the IRS, it has to be coded and tested for calculations and e-filing acceptability.

The form won't be available until 03/31/2022. Federal Individual Form Availability

[Stacyt1983]

According to the IRS website, form 8915-F and instructions were released on 2/2/22 and 2/3/22.  Is there any updated timeframe on how long the coding/testing will take?  I would like to continue using Turbo Tax but if it is going to take them almost 2 months (until 3/31/22) from the form release to code/test it then I will go elsewhere. 

[Stacyt1983]

Wow... Thanks for no response at all for the past 3-4 weeks since I've asked the question. 

[ColeenD3]

No, you do not get a new 1099-R. You did not have a distribution.

Follow these steps to enter your information. It is taking a while to get the availability for the form.

Once the section is available follow these steps to report any further tax to be paid:

1. Login to  TurboTax 
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 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?"
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen.

You will be guided through the screens.

[mmizzack]

100% agree! If it's not updated and implemented into TurboTax soon, I will go elsewhere. Can anyone from TurboTax comment on this time frame?

Michael

[RickPug]

I took a Covid-19 related distribution of $40,000 in December 2020.  I opted to spread it over the 3 years.  In November 2021, I paid back $20,000.  How do I amend my 2020 return to reflect the repayment?  Also, how do I handle it on my 2021 tax return.  I am using Turbo Tax to file my taxes.

[Affordabletaxes2021]

You can indicate on the 8915-F that you made a repayment in 2020. It gets filed with this years return you don’t need to amend 2020. 

[Deast]

I received a max CARES ACT Covid distribution in December 2020 (tax year 2020) and have paid taxes on 1/3rd each year from 2020, 2021, 2022. Now I am doing my 2023 taxes, and Turbo tax is carrying over another 33,333 as taxable in 2023. Why is this the case? Does it not realize I already paid all three 1/3rd's?

[DoninGA]

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@Deast wrote:

I received a max CARES ACT Covid distribution in December 2020 (tax year 2020) and have paid taxes on 1/3rd each year from 2020, 2021, 2022. Now I am doing my 2023 taxes, and Turbo tax is carrying over another 33,333 as taxable in 2023. Why is this the case? Does it not realize I already paid all three 1/3rd's?

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The Form 8915-F Worksheet and the Form 8915-F along with the Form 1099-R were transferred from the 2022 tax return and need to be deleted.

If you are using the TurboTax desktop CD/Download editions installed on your personal computer, click on Forms.

When in Forms mode locate these forms on the left side of the screen.  Click on the form to open each one and at the bottom of the screen click on Delete Form

Or if you are using the TurboTax online editions -

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

[Deast]

That solved the problem. Thank you!

[Sahayre]

I am having the same issue.