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jbommarito5
Level 1

why isn't turbo tax asking me question about form #8915-E

Why isn't turbo tax asking me abou form 8915-E for my covid 401K distrubtion?

3 Replies
DavidD66
Expert Alumni

why isn't turbo tax asking me question about form #8915-E

Withdrawals from a IRA because you were affected by COVID-19 are not subject to the 10% early withdrawal penalty.  Additionally, the tax on the distribution can be paid over a three year period. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes.  

 

In order to waive the penalty and elect to the option to pay the tax over three years, you will have to complete Form 8915-E, which has not been released by the IRS yet.  If you would like to review a draft copy of the form, click the following link:  Draft, Form 8915-E.  Once the IRS finalizes and releases the form, TurboTax will make it available.  Until then, you'll have to wait to finalize your and file your tax returns.

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Mmm11
New Member

why isn't turbo tax asking me question about form #8915-E

The form has already been released and in have updated turbo tax but turbo tax is still not asking me if I withdrew due to COVID and I do not see where I can split the withdrawal over 3 years. 

KathrynG3
Expert Alumni

why isn't turbo tax asking me question about form #8915-E

Designating Form 8915-E details, that the withdrawal was for COVID-19 and designating the tax to be paid over 3 years is done in the IRA, 401(k), Pension Plan Withdrawals (1099-R) section after your Form 1099-R details have been entered.

 

To see this in TurboTax, return to the program and search for 1099-R. Select the Jump to link in the search results.

  • Click the edit icon by your Form 1099-R. After the initial entry, the following questions should appear: 
    • Where is your distribution from?
      • Pension/IRA distributions received before retirement age / None of the above
    • Do any of these situations apply to you?
      • I took out this money because of a qualified disaster (includes COVID-19)
    • Continue through the rest of the questions.   

If your questions are not there, and your program is fully updated, then delete and re-enter Form 1099-R.

  • To make sure the program is updated, close the program and the browser. Re-open using TurboTax.
  • To delete Form 1099-R in TurboTax, follow these steps:
    • From the left menu, select Tax Tools.
    • Select Tools.
    • Scroll to Delete a Form.
    • Scroll to Form 1099-R and select Delete and Delete Selected Form and Continue.
    • Refresh your browser window.
  • Return to the program and search for 1099-R. Select the Jump to link in the search results.
    • Enter Form 1099-R, which will produce the questions you need.

For more information, see: 

What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?

 

@Mmm11

@jbommarito5

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