When will form 8915E be efileable on turbo tax?

[DawnC]

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

[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?

[Caseyblue]

How is the repayment handled/reported within Turbo Tax ?

Is the reporting different if I make repayment prior to filing as opposed to after ?

[DaveF1006]

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.

[Caseyblue]

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 ?

[Cynthiad66]

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

[DoninGA]

@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.