8915-E

[acitrola]

Assistance please:

1) Client (over 60) withdrew $60,000 from pension during 2020.

2) Client filed 2020 tax return and paid taxes on the $60,000 distribution.

3) Client now wishes to repay the $60,000 in 2021, and amend her 2020 tax return to collect refund.

Specifically, when filing the 1040X, where/how do I show the repayment on the 8915-E, 1099-R or

8606 (?). 

I want it to be clear to the IRS that the $60,000 was repaid in the current year.

Thank you!

Anthony

[qbteachmt]

"I want it to be clear to the IRS that the $60,000 was repaid in the current year."

Read the Form 8915-E instructions. It's all listed there. The reason to amend 2020 is that your client didn't spread this over three years, but paid the taxes on the income all in the year of the distribution.

[acitrola]

Thank you for your reply.

I have poured over the 8915-E, but maybe I am missing the forest for the trees.

Part II - Line 10 reads: Repayments you made before filing your 2020 tax return."

I am stuck on where to reflect payments made in 2021, and after filing the 2020 tax return.

Thanks again.

[dkh]

Activate your 1040X (and amended state if applicable) before doing entering anything.  

I believe you can enter the repayment on the 1099R worksheet on the  "amount repaid before filing 2020 tax return"  .  This will get you the result you need on the Form 1040X - or at least it did on the return I tested on.      

You can then put in the 1040X explanation  the repayment was in 2021 with documentation.

[qbteachmt]

"I am stuck on where to reflect payments made in 2021, and after filing the 2020 tax return"

The extension due date is in October, and you intend to amend 2020, anyway.

"Include on 2020 Form 8915-E any repayments you make before filing your 2020 return. Any repayments you make will reduce the amount of qualified 2020 disaster distributions reported on your return for 2020. Do not include on your 2020 Form 8915-E any repayments you make later than the due date (including extensions) for filing your 2020 return. If you make a repayment in 2021 after you file your 2020 return, the repayment will reduce the amount of your qualified 2020 disaster distributions included in income on your 2021 return if you have spread the income over 3 years, unless you are eligible to amend your 2020 return."

"Amending Form 8915-EFile Form 1040-X, Amended U.S. Individual Income Tax Return, to amend a return you have already filed. Generally, Form 1040-X must be filed within 3 years after the date the original return was filed, or within 2 years after the date the tax was paid, whichever is later.

Qualified 2020 disaster distributions. If, after filing your 2020 return, you make a repayment, the repayment may reduce the amount of your qualified 2020 disaster distributions reported on that return. Depending on when a repayment is made, you may need to file an amended tax return to refigure your taxable income.If you make a repayment by the due date of your 2020 return (including extensions), include the repayment on your amended 2020 Form 8915-E."