For those of us who took retirement distributions due to COVID-19 in 2020 and chose to pay taxes over 3 years, form 8915-E should again be used for the 2021 tax year for the 2nd installment. It doesn't appear that the form is properly updated in TurboTax nor that there's any step-by-step accommodations for this. All of the guidance and information from Intuit on this form appears to be old, from early 2021 pertaining to the 2020 tax year when this form was first released. It's now 2022 and there seems to be no information on when this form will be updated and supported for additional tax payments on 2020 distributions.
I'm not an expert, but I'm the original poster of this thread, and I think I understand why we've all been confused. First, it's a bit frustrating that so many experts toss out "2020" and "2021" without clarifying if they're referring to the year you took the distribution, or the year for which you're filing taxes. So that doesn't help.
Second, as best I can tell, this issue of electing to be taxed over 3 years seems to be novel (is it?) and the IRS seems to be changing how 8915 is used because of it. Normally, the letter (-A, -B, etc.) seems to refer to "everything related to a distribution in the given year". So, 8915-C would be "everything related to a distribution in 2018", and 8915-D would be "everything related to a distribution in 2019". And so that's what led me and others to believe that 8915-E would be used not just last year for the distribution we took in 2020, but again this year. But it's this 3-year thing that it seems the IRS is handling differently.
The key is that when you go in and look at the draft 8915-F, which would normally be just "everything related to a distribution in 2021", it's also being used for the additional years of taxation for those 2020 early distributions we took due to COVID. As some have pointed out, it's a draft and not final, but if you go through the draft 8915-F form and instructions, you'll see there's a place that you're supposed to indicate the one-third of the distribution from 2020 that should be taxable in 2021 (they have you enter an amount from your 2020 1040, and it's the first third you were taxed on that year). And it looks like they're going to use 8915-F again next year for the final third. That's how it appears based on the draft form and instructions anyway.
I really appreciate all of the experts weighing in on this thread, but I'm with @kmcmillan in that it's very confusing, and honestly, the way the responses are worded doesn't help much.
This is part of what was confusing me also. I think the key is that we're not reporting distributions for 2020. We already did that when we filed our 2020 tax returns. If you were reporting those distributions for the first time now (not sure why?), then you'd use 8915-E. But we already reported the distribution... so that's done, and therefore we're done with 8915-E. Now we just need to pay the third of the taxes owed for the 2nd and 3rd years, and the finalized form 8915-F has a very specific place for you to do that for the distribution we took in 2020.
You will report the second taxable portion of your 2020 coronavirus distribution in the Retirement section under Wages and Income of TurboTax.
However, this section is yet not ready as the IRS has not yet issued instructions for form 8915-F and you'll need to revisit this section later.
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I'd thought that you're supposed to use the same form for the year you took the distribution, so in this case 8915-E which is the form for 2020 distributions. But in looking at the draft form 8915-F and instructions, it seems we do need to use form 8915-F? I don't see any date for this form on the page that lists when forms will be available. Is this because Intuit doesn't know because the IRS doesn't have a date when they'll finalize it yet? This seems bad.
This form is scheduled to be released soon and it will be supported in TurboTax. The IRS has not completed the form which will be 8915-F for 2021. Wait until it is ready to eliminate any delays or issues with your return.
To record one third of a distribution you were allowed to take without penalty due to COVID, you can use the steps below.
- Sign into your TurboTax account > Select Wages and Income > Scroll to IRA, 401(k), Pension Plan Withdrawals (1099-R) > Edit/Add
- Continue through Form 1099-R entry if applicable and select I took out this money due to a qualified disaster
- Continue to enter the requested information
- Form 8915-F is used to report a disaster-related retirement distribution, and any repayments of those funds. It also allows you to spread the taxable portion of the distribution over three years, if needed and report prior year distribution amounts which are to be taxed in 2021.
- We'll complete and include Form 8915-F with your return if you qualify. Just enter your Form 1099-R and answer a few questions to determine your eligibility.
The Form 8915 is not yet completed by the IRS. It is still in draft, you can check the following links periodically to see when it is available.
Once available you will be able to enter it in TurboTax. Begin with the steps below:
- Go to Federal > Wages and Income
- Retirement plans and Social Security > Show more
- What is Form 8915-F?
The IRS has not yet released the final version of Form 8915-F and we do not have an estimated date yet. Please revisit this section later.
You can check for updates here once the IRS releases the final form: IRS forms availability table for TurboTax individual (personal) tax products
Once the form is available follow these steps to report any repayment:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info” screen)
- Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen.
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The draft of the 8915-F form on the IRS site says we use 8915-E again:
When Should I Not Use a Form
Reporting coronavirus-related and other
distributions for qualified 2020 disasters
made or received in 2020. This form
replaces Form 8915-E for tax years
beginning after 2020. Do not use a Form
8915-F to report qualified 2020 disaster
distributions made in 2020 or qualified
distributions received in 2020 for 2020
You will still use 2020 Form 8915-E
to report coronavirus-related and
other qualified disaster distributions
made in 2020 and to report qualified
distributions received in 2020 for qualified
So why are you waiting for 8915-F?
I don't care what form it is. Just trying to finish my taxes online through TurboTax. The program says not ready and to return later.
Just wondering when that later is. IRS is saying file early but then they don't finalize all the forms needed?
Just looking for clarity.
The IRS Form 8915-F and the instructions for the form are still in draft mode at the IRS. Until the IRS finalizes the form and the instructions then TurboTax cannot include the Form 8915-F in the software. After finalizing by the IRS the IRS has to approve the TurboTax 8915-F for filing. Best guess is that the form will be available sometime in March 2022.
@Anonymous Go to the Review section of the TurboTax program and there will be list of forms and/or schedules included in your tax return that have not yet been finalized for filing and the estimated dates when they will be available.
That is not my question though. The IRS site is saying I need to use 8915-E, not 8915-F. 8915-F is for distributions taken in 2021 and later, and 8915-E is for distributions taken prior. So why do I have to wait for 8915-F when my distribution was prior?
@cp666 As stated in the Form 8915-F instructions -
Purpose of Form
Use Form 8915-F to report:
• Qualified 2021 and later disaster distributions, if any;
• Qualified 2020 disaster distributions made in 2021 or 2022, as applicable (coronavirus-related distributions can't be made after December 30, 2020);
• Repayments of qualified 2020 and later disaster distributions;
• Income in 2021 and later years from qualified 2020 and later disaster distributions; and
• Qualified distributions received in 2021 and later years
And additionally -
• You are repaying, or have income from, a coronavirus-related distribution or other qualified 2020 disaster distribution reported on Part I of 2020 Form 8915-E;
Reporting coronavirus-related and other distributions for qualified 2020 disasters made or received in 2020. This form replaces Form 8915-E for tax years beginning after 2020.
The Form 8915-E was only used for tax year 2020. It will no longer be used for any other tax year.