Skip to main content
lbones
Level 6
January 7, 2022
Solved

Wil the amount of the 3 year COVID annuity repayment roll into the 2021 ProSeries program

  • January 7, 2022
  • 2 replies
  • 0 views

Last year, I had many clients that took the opportunity to withdrawal from their IRA's for the various COVID related issues.  I had some that paid all related taxes in 2020 while others opted to spread it over the allowed three years.  As I review the 2021 ProSeries Profession program, I do not see where the 2021 dollar amount required for repayment rolling into the clients files.  Is this something that is planned in an upcoming update or do we (as the preparer) research for all of our clients?

This topic has been closed for replies.
Best answer by qbteachmt

This has me confused as to which form we will be using.  I was doing some digging myself and found the following in the draft instructions for 8915-F,

On your 2020 Form 8915-E, you reported a coronavirus-related distribution of $9,000 made to you from your traditional IRA on April 14, 2020. You spread the income over 3 years ($3,000 in each of
2020, 2021, and 2022). You made no repayments of the distribution in 2020. In 2021, you made a repayment of $4,500. You will report $3,000 of the repayment on your 2021 Form 8915-F (2020 disasters). The excess repayment of $1,500 can be carried forward to 2022 and reported on your 2022
Form 8915-F (2020 disasters) or carried back to 2020 and reported on your 2020 Form 8915-E.

 


You need two pieces of info: Tax Year and Disaster Year.

Disaster Year 2020 is the transition. The transition is Tax Year 2020 for Disaster Year 2020 8915-E usage ends; it is used only this one year. Then, Tax Year 2021 for Disaster Year 2020 is the cut-over year and Forever form 8915-F begins.

For Tax Year 2021 and later, and Disaster Year 2020 or later, the "forever" form to use is -F.

For any Tax Year, for Disaster Years 2019 and earlier, use the year-specific Disaster Year form (tax- and disaster- specific), such as -D is 2019 Disasters and always will be. Eventually, the claim window for 2019 disasters and distribution reporting and repayment reporting will Close. That means tax year filing of 2021 for a disaster from 2019 will be filed using the 2021 Tax Year form 8915-D.

Intuit has already started updating the help topics.

2 replies

Level 10
January 8, 2022

Give it some time. You are still viewing an early release of the 2021 program with most if not all forms marked as not ready for filing.

Last I had heard the IRS may not yet have release the final version of the form (8415-E or something like that) that will be needed. After the release it will be necessary to expect a reasonable time for the software companies (proseries included) to be able to port that into their system.

lbones
lbonesAuthor
Level 6
January 8, 2022

Appreciate the quick reply Jeff.  Figured it would flow over but when I checked this afternoon, I got nervous.

qbteachmt
Level 15
January 8, 2022

It looks like it is going to require 8915-F for tax year 2021 and beyond, a new form that will be a permanent form. It's in Draft right now:

"Reporting coronavirus-related and other distributions for qualified 2020 disasters made or received in 2020. This form replaces Form 8915-E for tax years beginning after 2020."

*******************************Don't yell at us; we're volunteers
Just-Lisa-Now-
Intuit Community Champion
January 8, 2022

I had someone with a disaster distribution for 2017, hers rolled forward each year....I think the form wont be ready for quite some time though, they had it showing as end of Feb, now that datte is gone. 

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪