Form 8915E is currently scheduled to be released on February 25, 2021. You can monitor the status of the form via this link.
The form was released, but there is still a check that prevents me from e-filing. It says, "Check this entry: pension deduction worksheet." There is a box to review, I review it and proceed but it just comes back to the same screen...
@bell86103 wrote:
The form was released, but there is still a check that prevents me from e-filing. It says, "Check this entry: pension deduction worksheet." There is a box to review, I review it and proceed but it just comes back to the same screen...
Is that an error on the state return. I don't know of a Federal worksheet like that.
Also, you say "pension" - it this a pension that is paid to you automatically each month?
TurboTax says 8915-e is live and to download updates for desktop for mac application. I just did this, it had an update so I updated. When I select that I had a disaster distribution it still says I will have to "revisit" this area. How do I elect a disaster distribution.
@hman36 wrote:
TurboTax says 8915-e is live and to download updates for desktop for mac application. I just did this, it had an update so I updated. When I select that I had a disaster distribution it still says I will have to "revisit" this area. How do I elect a disaster distribution.
Try deleting the 1099-R and re-enter.
Okay its working I just am not eligible, mine is from a non-qualified annuity
Thats just the error that comes up. It's not specific to a pension that is just what turbotax is calling that section of my file. "Pension Deduction Worksheet: Federal Amount We're still working on updates related to retirement distributions that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when it's ready."
@hman36 wrote:
Okay its working I just am not eligible, mine is from a non-qualified annuity
Only IRA's or employer plans such as 401(k) plans or similar are eligible for the CARES act COVID provisions.
Non-qualified plans, pensions and equal periodic payment plans are not included.
I got the same message for my state return. I’ve reach out to TurboTax, through the live chat and they suggested to file by mail. I would prefer to file by E-File, so I’m waiting a few days to see if something changes.
@Caseyblue wrote:
NOT SEEING THE FORM
You will not SEE the Form 8915-E.
After entering the Form 1099-R the Covid-19 questions will be asked. The Form 8915-E will be generated by the software if the withdrawal was due to Covid-19. The form will be included in the federal tax return that is filed.
You are not going to see the form until you go through the 1099-R entry screens. You have to enter a 1099-R and the covid related questions will be asked after you are done entering the form. If you have already entered your 1099-R, go back to the retirement section and EDIT the form. Once you indicate that the withdrawal was covid related in the follow-up screens, TurboTax will add the form to your tax return. @Caseyblue
What if I want to repay half this year and half next year? How is the tax handled?
@Caseyblue wrote:
What if I want to repay half this year and half next year? How is the tax handled?
The amount repaid is added to your taxable income in the year of the repayment and taxed at your current tax rate.
How it is handled on your tax return depends on whether or not you elected to spread the tax over 3 years (equally) or whether you included the full distribution in your 2020 income. Those are your only 2 two options for covid-related distributions.
The timing of your distributions and repayments will determine whether you need to file an amended return to claim them.
Any repayments made before you file your return and by the due date (including extensions) reduce the amount of the distribution included in your income.
See examples on page 3 and 4. @Caseyblue
Can my repayment $ amounts vary in each of the 3 years?
Also, should I try to repay more or less $ in years with high income?
How is the repayment handled/reported within Turbo Tax ?
Is the reporting different if I make repayment prior to filing as opposed to after ?
Yes, there is an option to pay the full amount this year rather than defer payment over a three-year period. There will be a screen in the federal interview asking you if you want to pay all the tax this year. If you wish full amount of the tax this year, you will check the box in this screen indicating so. Here is what it looks like.
What if I repay part this year & rest next year .. how is the repayment handled/reported within Turbo Tax ?
Is the reporting different if I make repayment prior to filing as opposed to after ?
Form 8915 is not available yet. You have an option of paying back over a three year period.
At this point and time the Form 8915-E (Qualified 2020 Disaster Retirement
Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) is not finalized. We currently do not have an estimated date when the form is ready.
Please sign-up here and we will email you once the form is live.
Yes, you may repay all or part of the amount of a coronavirus-related distribution to an eligible retirement plan, provided that you complete the repayment within three years after the date that the distribution was received. If you repay a coronavirus-related distribution, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer so that you do not owe federal income tax on the distribution.
If, for example, you receive a coronavirus-related distribution in 2020, you choose to include the distribution amount in income over a 3-year period (2020, 2021, and 2022), and you choose to repay the full amount to an eligible retirement plan in 2022, you may file amended federal income tax returns for 2020 and 2021 to claim a refund of the tax attributable to the amount of the distribution that you included in income for those years, and you will not be required to include any amount in income in 2022. See sections 4.D, 4.E, and 4.F of Notice 2005-92 for additional examples.
n general, section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans (certain employer retirement plans, such as section 401(k) and 403(b) plans, and IRAs) to qualified individuals, as well as special rollover rules with respect to such distributions. It also increases the limit on the amount a qualified individual may borrow from an eligible retirement plan (not including an IRA) and permits a plan sponsor to provide qualified individuals up to an additional year to repay their plan loans. See the FAQs below for more details.
The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution.
IRS - Corona Virus Related Relief for Retirement Distributions
@Cynthiad66 Your answer is totally incorrect.
The Form 8915-E was available in the TurboTax online editions on 02/25/2021.
The Form 8915-E was available in the TurboTax desktop editions as a software update on 02/26/2021.