The IRS gave favorable tax treatment up to $100,000 for coronavirus-related distributions from retirement plans, including IRAs, 401k, and 403b. Generate the Form 8915-e TurboTax to report the repayment information if you took a covid-related distribution last year or in 2020. You can use TurboTax tax preparation and file the form. If you want to report it on your 2021 return, use the form 8915-F TurboTax. You will get the required information on form 8915-e 2020.
If you took the retirement distributions due to Covid-19 in 2020 and chose the three-year repayment plan, it is time for the second installment. The last letter of the form refers to the year. For example:
- Form 8915-C: 2018
- Form 8915-D: 2019
- Form 8915-E: 2020
- Form 8915-F: 2021.
The TurboTax form 8915-e was only for the tax year 2020. You will need the form 8915-f TurboTax for the tax year 2021. Form 8915-f will need the form 8915-f TurboTax for 2021.
Purpose Of The Form 8915-e TurboTax
Use the Turbotax form 8915-e or 8915-f TurboTax to report:
- Corona-related distributions
- Qualified 2020 disaster distributions in 2021 or 2022
- Qualified 2021 and later disaster distributions.
Here are a few things related to the repayments of Qualified 2020 and later disaster distributions-
- Qualified distributions received in 2021 or later
- Income in 2021 and later disaster distributions
Additionally, if you have the income or repaying the coronavirus-related distribution, report it on part 1 of the form 8915-E TurboTax. Here are the basic instructions for TurboTax 8915e form:
- Total distributions from all retirement plans
- Qualified 2020 disaster distribution form
- Retirement plans
- Traditional plans
- SEP IRAs
- SIMPLE IRAs
- Reth IRAs
- The purchase or construction of the main home is a qualified area.
What Is Qualified Disaster Distribution In Form 8915-e TurboTax?
If you try to withdraw the retirement funds earlier than 59.5, you will have to pay 10% additional tax on your early distributions. Covid-affected participants can:
- Borrow more funds
- Include the repayment over three years in equal parts
- Repay loans for a longer time
- Make one or more contributions.
TurboTax Form 8915-e lets you report your early distributions penalty-free.
Generate Or Add Form 8915-e TurboTax To Your Account
Here are the steps to manually add form 8915-e TurboTax on your device:
- Launch the TurboTax program and go to the Federal tab
- Select the Wages and Income option from the menu
- Choose the All Income option from the menu
- Go to the Retirement Plans & Social Security tab and select Show More
- Select the 1099R form and press the Start tab
- Answer the on-screen questions and fill out the required details
- Choose Yes if you withdrew due to covid 19
- Mark the checkbox and answer saying that you were financially impacted by Covid 19
- Answer the prompted questions
- TurboTax will generate IRS form 8915-e and spread your taxable amount.
Steps To Record One Third Of A Distribution Without Penalty
Use the below mentioned step-by-step process:
- Firstly, sign in to your TurboTax account
- Then, select the Wages and Income option from the main menu
- Scroll down and select the 401k pension plan withdrawals form
- After that, choose the Edit or Add option from the menu
- Then, continue through the form 1099-R form entry
- Select the I Took Out This Money Due To A Qualified Disaster option
- After that, enter the requested information on the text field
- Use the form 8915-E to report the prior year’s distribution amount to be taxed in 2020
- Use Form 8915-F to report the prior year’s distribution amount for the year 2021
- Complete and include TurboTax Form 8915-e or Form 8915-e TurboTax if you are qualified
- Finally, enter your form 1099-R and answer the required questions to check your eligibility.
Form 8915-e TurboTax- Report Your Repayment Using Form 1099-R
Once you get TurboTax form 8915-e for 2020 or form 8915-f for 2021, follow the instructions mentioned below:
- Firstly, log in to your TurboTax account
- After that, click on the Search box
- Then, type in 1099-R in the text field and press the Enter button
- Select the 1099-R form from the search results
- If you did not get 1099-R in 2021, press the No option
- Then, enter all your 1099-R and click Continue to proceed further
- After that, review the information provided in form 1099-R
- Finally, select the Yes option if you took disaster distribution before 2021.
You can fill out Form 8915-e TurboTax once it is available. The above article includes step-by-step instructions to fill out TurboTax form 8915-e. However, if you face any issues and are looking for an expert’s help, consult our experts to resolve the issue immediately. MWJ Consultancy offers professional accounting services for individuals and small-sized businesses. Experts are trained and experienced professionals, so they better know the formal and suitable ways to fill every kind of form. You can use their knowledge to troubleshoot emerging issues.
Frequently Asked Questions
TurboTax Form 8915-e is a disaster retirement plan distribution and repayment form. You can use it for covid-related distributions. IRS has made specific changes so that you will not be able to use form 5329 for covid-related exceptions. Use the new IRS form 8915-E.
TurboTax Form 8915-E or 8915-F TurboTax is related to the retirement account withdrawals. You can check the form section to get the latest updates on TurboTax form 8915-e or form 8915-f TurboTax.
If you are e-filing your returns, you can also use the alternatives. Yes, you can fill out the TurboTax form 8915-e or 8915-f TurboTax online with the help of online accounting software. Both forms are new and impacted by new laws. Few online tax preparation and filing software allow the form to be attached as a PDF.
Yes, Form 8915-e TurboTax is available now on TurboTax Online and TurboTax Desktop. Complete your form 8915-e or form 8915-f TurboTax if you are qualified. Choose your online tax filing software and complete the process mentioned in the article.