2020 filed return emergency covid distribution put me over the income limit for stimulus, how do I ensure this isn't counted against me and college student and myself get

Forum|Forum|5 years ago
March 18, 2021
2 replies
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Emergency distribution income should not be counted against you for receiving stimulus, plus college student would be receiving for first time and needed this as I am a single parent who has never received support. Counting on this.

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ReneeM7122

Correct, emergency distribution incoem should not be counted against you for recieveing stimulus. Here is a TurboTax article about the American Rescue Plan.

alov55109Author

The emergency distribution was added to my adjusted gross income on TurboTax and I did select that it was the emergency distribution. Will the system be updated so this doesnt go into the adjusted gross income field and sent to IRS?

MaryM428

The distribution is added to the AGI, It is the 10% penalty for early withdrawal that is waived.

But you can reduce the effect on your AGI, by spreading the distribution over three years and filing Form 8915-E. You can also reduce AGI by paying back the distribution.

When you enter your Form 1099-R, we’ll ask you a few questions to determine your eligibility for the exemption, and complete and include Form 8915-E in your return if you qualify. It allows you to spread the taxable portion of the distribution over three years.

Here are details on Form 8915-E

Hal_Al

Employee

What was the source of emergency covid distribution?

If you're asking about the coronavirus relief package funding to colleges specifically designated for emergency financial aid to student, You don't report that payment, as income, on your tax return or the student's.