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Level 2
posted Jan 24, 2021 11:05:57 AM

What form/where is the form/why are there no options to define my IRA withdrawl as per the CARES ACT?

What form/where is the form/why are there no options to define my IRA withdraw as per the CARES ACT? in my 2020 turbo tax software?

0 3 495
3 Replies
Expert Alumni
Jan 24, 2021 12:57:06 PM

In TurboTax Online, after you enter the 1099R information you will see a screen for "Uncommon Situations"  Check the 1st box that indicates "I took out this money because of a qualified disaster (includes COVID-19)"  The Covid-19 election to defer for Cares Act distribution is not completed yet

 

If you are working in the desktop software, there will be an option to elect this Cares Act deferral in a future release. 

 

This is not yet implemented in 2020 TurboTax.  When it is, you can expect  it to behave similar to the reporting for natural disaster distributions are treated.

 

 

Level 2
Jan 30, 2021 3:07:40 PM

When will this be implemented in the Desktop/Downloaded version?

Why is there no warning about MAJOR impending updates or MISSING unfinalized pieces?

It would be very easy to file your taxes incorrectly if you did not already know to be expecting this.

Expert Alumni
Jan 31, 2021 2:30:59 PM

The IRS will be releasing Form 8915-E to use with the 1099-R. Here is more information:

CARES Act and 1099-R Withdrawal.

 

The software has not been updated yet because the form has not been finalized by the IRS. Once the software has been updated, you will be prompted through the form with instructions on how to enter the information.

 

The IRS has not provided a release date for the form at this time. Use this link IRS Form Availability to watch for when the 8915-E form will be available in the software once the IRS completes it.