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When will the next update to TurboTax be released that includes early distributions from an IRA due to qualified disaster (including COVID-19)?

Forum|Forum|5 years ago
January 19, 2021
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TurboTax Self Employed Online

Best answer by macuser_22

@saruff wrote:

Any updates on when this will be released for 2021 returns to recognize the second year of taxes on the distributions for those of us who chose to split it over 3 years?

Reporting the 2021 CARES act retirement plan distribution for 2020 that gave you 3 years to repay it back to the plan will be part of the 1099-R interview. If you do not have a 2021 1099-R it will ask if you have a 2021 1099-R, if you answer no it will ask if you have 1099-R income - say no and it will then ask if you had a disaster distribution from 2017-2020 - say yes. Currently it will say that the form is not ready yet - check back later.

This will be reported on a new 8915-F form that is still in the draft state at the IRS. Once the IRS finalizes that form the IRS must then write the e-file specifications (schema) for TurboTax (and all other e-file providers) to program from. That usually takes 2-3 weeks after the paper form is finalized.

The new form is expected sometime in March.

The draft forms can be viewed here:
https://www.irs.gov/pub/irs-dft/f8915f--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915f--dft.pdf

VolvoGirl

Employee

Are you having a problem? It should handle that now.

R

rcbickettAuthor

Yes, when entering the 1099-R on the "Tell us if any of these uncommon situations apply" screen, the first listed is "I took this money because of a qualified disaster (includes COVID-19)" and then the bottom of the window displays "You'll need to revisit this are. The IRS instructions related to disaster distributions weren't ready in time for us to include them in this release. Please revisit this area later."

It would be helpful to know when to expect the next release.

O

Opus 17

Employee

We don't know. The IRS has not issued the final form 8915-E yet, and it will probably take 1-2 weeks after the IRS releases the paper form for it to be programmed, reviewed and applied to Turbotax.

K

Ksynhorst

is there any update on this yet?

CatinaT1

You will report this on a Form 8915-E. The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act. So this form cannot be included in the TurboTax program. You will not be able to proceed until the form is available.

The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.

We estimate it will be sometime in February 2021 before the form is available. You can watch this link for the form availability. Currently, the form is not listed here since there is no estimated date. Once there is, you will find the form listed with the date available.

IRS forms availability table for TurboTax individual (personal) tax products

Additionally, the IRS will not start processing returns until February 12, so waiting for this form is not slowing down the processing of your return.

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R

rcbickettAuthor

The forms availability table shows the dates for the other 8915- forms (A, B, C, D) as "02/18/2021" for the Printed column and "Unsupported" in the E-file column. Does that mean that we will not be able to E-File a return with one of those forms?

J

jonsarandcin

The list of forms available now has 8915-e available online tomorrow the 25th....

S

saruff

Any updates on when this will be released for 2021 returns to recognize the second year of taxes on the distributions for those of us who chose to split it over 3 years?