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.
Thank you
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.
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.
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.
NOTE: This Form 8915-F is still in IRS draft form. Continue to check the federal forms availability for a date of release.
Hello
the link to forms doesn't even list 8915-F as an option. Can you tell me when the form may be available?
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:
@bdeddeh
8915-E isn't listing on that TurboTax list of when forms will be available. Can you advise when this form will be ready?
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:
@Anonymous
The draft of the 8915-F form on the IRS site says we use 8915-E again:
When Should I Not Use a Form
8915-F?
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
disasters.
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
2020 disasters.
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.
We received the 401k Covid Care Acts withdraw only in 2020- can I use form 8915-E or am I supposed to use form F?
we split our tax to come out over 3 years
@jashreed wrote:
We received the 401k Covid Care Acts withdraw only in 2020- can I use form 8915-E or am I supposed to use form F?
we split our tax to come out over 3 years
You will need to use the Form 8915-F when it becomes available from the IRS.
You will report this in the Retirement Plans and Social Security section under Wages & Income. However, the Form 8915-F has not been finalized by the IRS for including in a 2021 tax return so the questions are not being asked until the form is available. There is no estimate from the IRS when this form will be available, but guessing sometime in March 2022.
If you opted to file your 2020 401k cares act withdrawal over 3 years, do you still have to file state taxes in the original state you lived when the 401k was withdrawn in 2020 if you moved and lived in a new state in the whole 2021 tax year? Or do you just file the second portion of it in the state you lived in in 2021?
Yes, you would just file for the state you lived in for 2021.
The distribution amount you report in your Federal return will flow to your state return appropriately.
You already paid tax on the distribution amount you reported in 2020 to the state you lived in 2020.
You may want to check your new state policies on taxation of Retirement Distributions.
Click this link for info on How to Contact your State Dept of Revenue.
I'm so confused... The post above this says to use 8915 E for distributions taken out in 2020. But here it says F?? Can someone clarify the difference between E and F and which form needs to be filled out if you took early distribution in 2020 under the CARES Act and are paying taxes over 3 years? This will be my second installment.
Don't be confused.
Use 8915-E for 2020, and 8915-F for 2021.
Continue to wait.
I'd love not to be confused but it's difficult with contradictory information! One person says to use E, others say F... I just want to verify that I'll use the correct form.
You will report this in the Retirement Plans and Social Security section under Wages & Income. However, the Form 8915-F has not been finalized by the IRS for including in a 2021 tax return so the questions are not being asked until the form is available. There is no estimate from the IRS when this form will be available, but guessing sometime in March 2022.
As stated in the Form 8915-F instructions - https://www.irs.gov/pub/irs-dft/i8915f--dft.pdf
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.
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.
Since the 1099-R was for year 2020 and I don’t receive any 1099-R, how do I complete the 1099-R for 2nd portion of distribution qualified and filed in 8915-E form in 2021 filing?
I hope that Turbo Tax online will use last year return and automatically help all of us with this year and next year filing on the distribution. Please advise so I can complete the filing online. Thank you
@ung29378 wrote:
Since the 1099-R was for year 2020 and I don’t receive any 1099-R, how do I complete the 1099-R for 2nd portion of distribution qualified and filed in 8915-E form in 2021 filing?
I hope that Turbo Tax online will use last year return and automatically help all of us with this year and next year filing on the distribution. Please advise so I can complete the filing online. Thank you
You will report this in the Retirement Plans and Social Security section under Wages & Income. However, the Form 8915-F has not been finalized by the IRS for including in a 2021 tax return so the questions are not being asked until the form is available. There is no estimate from the IRS when this form will be available, but guessing sometime in March 2022.