8915-E fORM

[shers]

I have been reading in the Forum that we must attach the 8915-E form to the filed return when efiling the 1040.  I have one question, it shows on the Pro Series Basic in the forms section, yet it states that the form is not available in the ProSeries Basic Edition.  Is it possible to fill the form out online from the IRS.gov website and attach it to the return?  OR AM I REQUIRED TO add the Professional ProSeries Edition to my already Basic Edition and start the tax return completely over?  Any assistance would be great.

[qbteachmt]

It's not available yet. It's scheduled for 2/25.

Bookmark this and monitor it:

https://proconnect.intuit.com/proseries/forms-finder/

Form 5329 is for waiving the penalty, if that applies.

Form 8915-E is for reporting the taxable income over the one year or over three years.

[shers]

Thank you for your response.   I was just uncertain that when it said unavailable for ProSeries Basic Edition, it meant that I would have to purchase Pro Series Edition.   

I will be on the lookout for that form to appear in ProSeries Basic Edition.   

[qbteachmt]

Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Taxpayer)	Final, EF Ready
Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Spouse)	Final, EF Ready

[Terry53029]

@qbteachmt From IRS 8915E instructions: 
Qualified 2020 disaster distributions aren’t subject to the additional 10% tax (or the 25%
additional tax for certain distributions from SIMPLE IRAs) on early distributions and
aren’t required to be reported on Form 5329

https://www.irs.gov/pub/irs-pdf/i8915e.pdf

[qbteachmt]

"and aren’t required to be reported on Form 5329"

The reason I provided this: "Form 5329 is for waiving the penalty, if that applies." Is because the 1099-R with code 1 will indicate no known exception. I know some people are overriding that entry. But, instead, you would use 5329 to show Yes, an exception does apply, thank you very much.

Example for ProSeries by:

athaureaux6

Level 7

‎"02-02-2021 01:11 PM

Go to Form 5329, right after Line 1 there is a list of things that will waive the 10% penalty, scroll down and Look for Distributions Not subject to additional Tax, find Letter L, write the amount of the distribution and you will see that the software will write code 12 on Line 2 and waive the penaltly. There will be another way to do it once the software updates the 1099R on February 18. Hope it helps. If you look at the instructions of Form 5329, in the IRS website, Code 12 includes the Coronavirus Related Distribtuions Waiver. Thank you."

From the Form 5329 instructions:

You received a distribution subject to the tax on early distributions from a qualified retirement plan (other than a Roth IRA) and you meet an exception to the tax on early distributions from the list shown later, but box 7 of your Form 1099-R doesn’t indicate an exception or the exception doesn’t apply to the entire distribution."

And there are people asking on this forum about a client's distribution where there was withholding, and then they did a rollover. However, it seems they needed to see the explanation for the math to understand gross vs net for rollover contributions. You cannot ask for the withholding to be returned, so that part does not qualify; or, they didn't put it back timely.

"Any taxable amount not rolled over must be included in income and may be subject to the 10% additional tax on early distributions."

There are many reasons you might need to use 5329, which is for the penalty. It can even be filed without a 1040.

[qbteachmt]

Go to Form 5329, right after Line 1 there is a list of things that will waive the 10% penalty, scroll down and Look for Distributions Not subject to additional Tax, find Letter L, write the amount of the distribution and you will see that the software will write code 12 on Line 2 and waive the penaltly. There will be another way to do it once the software updates the 1099R on February 18. Hope it helps. If you look at the instructions of Form 5329, in the IRS website, Code 12 includes the Coronavirus Related Distribtuions Waiver. Thank you."

From the Form 5329 instructions:

You received a distribution subject to the tax on early distributions from a qualified retirement plan (other than a Roth IRA) and you meet an exception to the tax on early distributions from the list shown later, but box 7 of your Form 1099-R doesn’t indicate an exception or the exception doesn’t apply to the entire distribution."

And there are people asking on this forum about a client's distribution where there was withholding, and then they did a rollover. However, it seems they needed to see the explanation for the math to understand gross vs net for rollover contributions. You cannot ask for the withholding to be returned, so that part does not qualify; or, they didn't put it back timely.

"Any taxable amount not rolled over must be included in income and may be subject to the 10% additional tax on early distributions."

There are many reasons you might need to use 5329, which is for the penalty. It can even be filed without a 1040.

[Terry53029]

@athaureaux6 @qbteachmt the instructions for 5329 have been updated to eliminate reference to  Coronavirus, and if the reason is Coronavirus you do not use 5329 regardless of the code in box 7 of the 1099R. Thank you very much

[qbteachmt]

Thanks, @Terry53029  and for reference, @athaureaux6 wasn't party to this topic. And I already am, so there is no need to do a specific call out to get my attention.

[Terry53029]

You are welcome 😉