Tax relief for 1099 R distributions under the "Cares Act"

Forum|Forum|5 years ago
March 20, 2021
3 replies
28 views

Client is requesting tax relief for 1099R distributions due to COVID 19: one of the 1099R has a code 1 and the other is 1099R with a J code for a Roth distribution. He was told by the Financial custodian that he can pay the taxes on one over a period of time (averaging)? Have not been able to find instructions from IRS under the Cares Act for either one Please help!

ProSeries Professional

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A

ando421

Level 3

If you scroll down on the 1099-R form you will see a "Coronavirus Disaster Relief" section and you can click the box for 2020 Coronavirus Disaster and underneath that you will see another box that says "Entire distribution qualifies" or "Enter Qualified Amount" and if you click the box for entire amount is qualified it will automatically adjust it to the 1/3 amount.

M

mappp

Level 5

Follow ando's advice will correctly create Form 8915-E. There is a check box to not spread the distribution over 3 years.

qbteachmt

Level 15

"Have not been able to find instructions from IRS under the Cares Act for either one"

You are seeking info on CARES Act Disaster Retirement Distribution provision. It's not income averaging; it relates to Disaster provisions, which is why 8915-E applies.

The IRS has forms and instructions.

Here's the ProSeries Help Article: https://proconnect.intuit.com/community/retirement-tax-credits-and-deductions/help/generating-form-8915-e-in-proseries/00/121289

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