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

[lbones]

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?

[jeffmcpa2010]

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]

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

[qbteachmt]

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."

[Just-Lisa-Now-]

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. 

[Just-Lisa-Now-]

I saw this in the 8915F instructions, so 2020 distributions will still use 8915E.

[qbteachmt]

I posted the draft instructions here in Tax Talk:

https://proconnect.intuit.com/community/tax-talk/discussion/form-8915-e-will-now-be-8915-f/01/186194...

"This form replaces -E for TAX YEARS beginning after 2020."

In other words, the Filing Year of 2021 is when you use -F, for covid and other disasters in 2020. For filing tax year 2020, you still use -E.

[qbteachmt]

Reference table:

Disaster Year = Form

2017 = B

2018 = C

2019 = D

2020 = E but only for filing in 2020; then it is -F

Tax Filings for 2021 and beyond (at least as of this draft) will always be -F for any 2020 and later disaster, and the disaster year will be a designation on the form.

[Just-Lisa-Now-]

So the 8915E in the 2021 program is an obsolete form?

[qbteachmt]

"So the 8915E in the 2021 program is an obsolete form?"

I would expect it to be pulled out; according to the IRS, there is no such thing as a 2021 8915-E 🙂

[Just-Lisa-Now-]

I dug further into the instructions....we're gonna be waiting forever and a day for a whole new form   8915D shows it wont be ready until Mid March and its not even new.

[lbones]

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.

[qbteachmt · Accepted solution]

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.

[qbteachmt]

Oh, for this part: "or carried back to 2020 and reported on your 2020 Form 8915-E."

That's because Amending 2020 is the same tax year as 2020 filing, so you use 2020 tax forms.

Of course, now, they are using a Forever Form 1040X:

"Which Revision To Use

Use the July 2021 revision of Form 1040-X to amend 2019 and later tax returns, until a later revision is issued. Use these instructions with the July 2021 revision of Form 1040-X.

If you are amending a 2018 or earlier tax return, use the prior revision of this form and instructions both dated January 2020. All revisions are available at IRS.gov/Form1040X."