Question

Do I even need form 8915 E to complete my filing?

Forum|Forum|5 years ago
February 17, 2021
2 replies
0 views

If I prepaid all the tax owed when I took my Covid 401k distribution, and do not intend to repay the distribution at all, do I still need form 8915 E to complete my filing?

Other than form 8915 E holding up the show, I have been done and ready to file, for weeks.

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larrybrow

You will need to report the distribution on your 2020 tax return, along with whatever taxes were withheld. If you wish to take advantage of the Covid19 disaster distribution rules which allow Covid distributions to be exempt from the 10% penalty for early distribution (for those who are not yet 59 1/2 yrs old) and to spread the distribution evenly over the next 3 years, rather than reporting the entire distribution on your 2020 return, then you will need to file form 8915E to make this election. You can also use this form to opt out of spreading the distribution out over 3 years and only exempt the 10% penalty. If you do not report the distribution you will most likely get a letter from IRS indicating that you failed to report all of your 2020 income, along with a bill for additional taxes plus interest and penalties.

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AKSnobearAuthor

LarryBrow - appreciate the feedback.

I am 55, have reported the distribution in the 2020 filing - have entered the 1099 R data from financial institution (code 2; early distribution, exception applies) showing prepaid tax in full.

My confusion lays in whether I need the form 8915 E or not, as I prepaid the taxes - do not intend to spread it out over 3 years - do not intend to repay any of the distribution - I do not qualify for stimulus checks.

I appears from what I can read, 8915 E will not be e-fileable form. 8915 E will not be available for another week or ?

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AKSnobearAuthor

FYI - form 8915 E is now available (no longer in draft) as a downloadable / fillable form, on the IRS website.

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Irene2805

I would wait until Form 8915-E is released, but it depends on how big the 10% early withdrawal penalty is!

You could always e-file without the form and then amend your return later, but the IRS is very very very backlogged in processing non-electronic paperwork.