Question

I don't see TurboTax adjusting for Covid 401(k) withdrawals

Forum|Forum|5 years ago
January 22, 2021
1 reply
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I took money out of my 401(k) in 2020, which were authorized (penalty-free) withdrawals due to Covid-19. The law also allows for the taxes on those withdrawals to be spread out over 3 years. However, I do not see any option anywhere in TurboTax to adjust for that situation. Is it in there somewhere and I am missing it?

I am using TurboTax Home and Business 2020.

TurboTax Home & Biz Windows

DoninGA

Employee

The IRS has a new Form 8915-E for COVID-19 related retirement account withdrawals. This form has not been finalized by the IRS for filing with a 2020 federal tax return. The IRS has not announced when this form will be available. Once available it will be included in the TurboTax software.

We estimate the form may be available sometime in February.

W

wallstreetbets

When do we anticipate this form to be ready? I know that many people I have talked with have asked about this as they are having to delay filing of their tax return due to this form not being ready. Does Turbo Tax representation anticipate this form to be ready by Feb. 15th?

L

linaj20201

No, we cannot anticipate, unfortunately. As of today, the IRS has not yet finalized the Form 8915-E for retirement plan distributions, therefore this form cannot be incorporated in the TurboTax program. At this point, the IRS has not corresponded with us when the form will be finalized and available. To see the IRS draft form, click here: Form 8915-E

Another option is you can file without this form and come back later to amend. But note that IRS will not start processing any returns until February 12, 2021.

Beginning with the 2019 tax year, you can e-file amended tax returns. If you used TurboTax to prepare Form 1040-X, follow the software's instructions to e-file the amendment.

To see how to amend your taxes, click here:

Steps to amend in TurboTax

How to file amendment

@wallstreetbets