deferment of tax on retirement distributions due to covid. How is that recorded in pro series

[ivlabonne]

Cannot find where in Pro series to opt out of paying tax on retirement distribution due to COVID. I understand we have 3 years to repay or pay. What form allows to opt out of paying on entire distribution on 2020 tax return?

Thanks

Irene

[Just-Lisa-Now-]

Complete the disaster section on the 1099R worksheet and that will populate the 8915E to spread it over 3 years and remove the penalty.

[ivlabonne]

Lisa,

Thanks so much. I went to do as you said and found that I had already done that. it's just that the client still owed so much money I didn't realize that what he owed was so much even at 1/3.

thanks again.

I

[mickey]

To spread the distribution, do I just take the total distribution amount, divided by 3 and enter that on the B section of the worksheet as "amount that is qualified"?   

I wonder how the IRS will do their matching when on box 2 of form 1099R it lists the full amount as taxable.  My clients are worried they'll get one of those CP letters.

Do you happen to know what will happen next year?  I wonder if form 8915E will carry over to 2021 and 2022.

[mickey]

What happens to the taxes withheld on the 1099R then? Do we just leave that alone?

[ivlabonne]

I didn't have to divide anything by 3. The software does in on the 1099-R  then you go to the 8915E and finish it. the tax that is withheld on the 1099R goes as tax withheld on the 2020 return.  

Irene

[Just-Lisa-Now-]

the taxes dont get spread, they all get applied as payments in 2020

[Just-Lisa-Now-]

Mark the Covid distribution boxes on the 1099R worksheet, that will create the 8915E all filled out and remove the penalty.

2021 and 2022 will include an 8915E form as well to show the income thats been deferred to those years....this is something we as preparers will need to be vigilant abut looking for with new clients in the coming years, so that it doesnt get missed! We will HAVE to see the 2020 tax return.

[Just-Lisa-Now-]

diester distributions have been around for awhile now (hurricanes, wildfires, etc), IRS knows to look to the 8915 forms for deferred amounts, no CP2000 will result.

[mickey]

You are super!  Thank you for the help.

[jenny j4]

I'm checking the 2020 Coronavirus-related Distribution but it doesn't populate the 8915E for me.

[Just-Lisa-Now-]

Theres 2 things that need to be checked or filled in, if youre not going to check the second box, then you need to fill in the amount below it instead.

[jenny j4]

Thank you so much. 

[jenny j4]

One more question if you don't mind. I will be leaving 8915E alone, correct. Nothing to enter there until next year. It did populate it.

[JFZ]

I just transfered a 2020 Client that had the Form 8915-E spread over 3 years on the 2020 return but I cannot find where a 8915E or any income was transferred or carry overed to 2021???

Is there a bug in the program?

[JFZ]

Was just informed by Proseries Support that there is NO automatic transfer of the carryover - you have to manually enter it.

Ouch - Easy to forget

[qbteachmt]

It will be Form 8915-F.

[chiodoinc]

Once we populate the form 8915-E for 2021, on part 1 for retirement plans under 2020 qualified disaster distributions for 2021 do we put the total amount or the 2 of 3 year amount (for instance, last year the total was $75,000 and $25000 was accounted for on the return with $50,000 left to spread out over the next two years).  I guess I am unsure what to put in the columns so it shows the $25000 for this year.  I am new to this form.  Can someone advise?  I don't want to screw things up. Thank you 

[chiodoinc]

Thank you Lisa.  I enjoy reading your posts. Your very knowledgeable. Much appreciated.

[qbteachmt]

There is no such form in use for 2021: "Once we populate the form 8915-E for 2021,"

This topic was started in 2021, for tax year 2020. That form is only used for tax year 2020 for disasters in 2020.

For updating this topic, for tax year 2021 being filed in 2022, there is a New Form: 8915-F. It's called the Forever Form. It's for Disaster Years 2020 and later, for filing tax years 2021 and later.

That means the 2nd and 3rd portions of the covid distribution from 2020 is reporting on Form 8915-F, in tax year 2021 and in 2022.

"I guess I am unsure what to put in the columns so it shows the $25000 for this year."

The Form 8915-F hasn't been put into your program, yet. You will get that update.

[chiodoinc]

Thank you.  I didn't realize the form was not available yet in Proseries.  I saw the 8915E from 2020 so I thought it was the same form for 2021.  Is there a release date for that form yet or should we just put those returns to the side? 

Thank you for the quick response.

[qbteachmt]

The original Release date for ProSeries for Form 8915-F was March 17. The IRS didn't release it until earlier this week. The Official Release date for ProSeries now shows March 31. But some people seem to think it might be in the next update.

You can watch Forms Release dates yourself at this link:

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