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Level 4
February 9, 2021
Solved

Covid 401k Withdrawal and three year taxable period

  • February 9, 2021
  • 9 replies
  • 30 views

I have a 1099R for $32K that was withdrawn due to COVID.  I know that I can go to Line L on form 5329 and the distribution will not subject to the penalty.  I also know on the 1099R worksheet I can scroll down to the Qualified Disaster portion and mark the 2020 disaster box and enter the amount.  My question is do I enter the whole $32k or just the portion that is going to be reported for this year?  I want the taxable amount to be spread over a three year period.  If I enter the entire $32K how do I get the taxable portion of $10,667. on line 5b of form 1040?  When I originally entered the 1099R both box 1 Gross distribution and box 2 Taxable amount are $32K.  Do I override the taxable amount and enter $10667?  If so, will it be able to be electronically filed?  I do realize that form 8915-E is not eligible to be e-filed and will have to be attached to the file before efiling.  I am using Pro Series Basic. 

 

 

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Best answer by Terry53029

The Program is not updated to handle the 3 year distribution, so we will have to wait for Intuit to update. Maybe someone that has that info will chime in.

9 replies

Intuit Community Champion
February 9, 2021

The Program is not updated to handle the 3 year distribution, so we will have to wait for Intuit to update. Maybe someone that has that info will chime in.

JoJoAuthor
Level 4
February 9, 2021

Thank you for the information!

dkh
Level 15
February 9, 2021

Are you trying to circumvent using the Form 8915-E so you can efile the return?   Sounds like a bad idea.

JoJoAuthor
Level 4
February 9, 2021

No, I know 8915-E can not be efiled.  I am trying to get the proper taxable amount to flow through to form 1040  line 5b.

Just-Lisa-Now-
Intuit Community Champion
February 9, 2021

"Do I override the taxable amount and enter $10667?  If so, will it be able to be electronically filed?  I do realize that form 8915-E is not eligible to be e-filed and will have to be attached to the file before efiling."

This is what we are all wondering, how will this work since the 8915E cannot be Efiled.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Intuit Community Champion
February 9, 2021

@Just-Lisa-Now- If you hover your mouse over the check box on the 1099R worksheet for 2020 corona-virus distribution, there is an explanation.

Just-Lisa-Now-
Intuit Community Champion
February 9, 2021

this one?  

 

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪