One of the relief measures for Covid-19 is the option to spread the taxation of your retirement distribution (up to $100,000) over three years. Please read this IRS document for more information. To take advantage of this option, please follow these steps: Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Do any of these situations apply to you?. Check the box which says I took out this money because of a qualified disaster (includes COVID-19). Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue. Follow the interview until you arrive at the screen Was this a withdrawal due to COVID-19 or a Qualified Disaster Distribution? Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue Follow the interview until you arrive at the screen Does [name] want to pay all the tax this year? Click Continue and the taxation of your distribution will be spread over three years.

Question

I took a covid related ira withdraw and the program does not allow me to spread the withdraw over 3 years.

Forum|Forum|5 years ago
March 8, 2021
1 reply
0 views

please help

TurboTax Premier Online

M

MinhT1

One of the relief measures for Covid-19 is the option to spread the taxation of your retirement distribution (up to $100,000) over three years.

Please read this IRS document for more information.

To take advantage of this option, please follow these steps:

Enter your form 1099-R normally.
After entering your form 1099-R, click Continue until you reach the screen Do any of these situations apply to you?.
Check the box which says I took out this money because of a qualified disaster (includes COVID-19).

Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue.

Follow the interview until you arrive at the screen Was this a withdrawal due to COVID-19 or a Qualified Disaster Distribution?

Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue
Follow the interview until you arrive at the screen Does [name] want to pay all the tax this year?
Click Continue and the taxation of your distribution will be spread over three years.

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N

novodka44Author

I never see the screen that asks me that question do I want to spread over 3 years. It just never appears.

RayW7

The form for this transaction, 8915-E, was not available until recently. Be sure to update your version of TurboTax so all updated forms are available.

This interview question will appear while entering your 1099-R information.