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How to enter coronavirus-related retirement plan distributions in Lacerte

SOLVEDby Intuit494Updated 1 year ago

This article will help you generate Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (or Form 8915-F in 2021 and 2022). These forms are used to report COVID-19 related distributions from an IRA or other retirement plan, like a 401(k). The taxable amount of qualifying distributions can be spread over three years.

Before you start:

Form 8915-F (Qualified Disaster Retirement Plan Distributions and Repayments) replaces Form 8915-E for 2021 and later years.

  • Starting in tax year 2022, the IRS supports Form 8915-F as an e-file form. For years prior, completed Form 8915-F and 8915-E must attached as a PDF for e-filing.
  • Qualifying coronavirus-related distributions made any time during 2020 can claim disaster relief.

To generate form 8915-F:

  1. Go to Screen 13.1, Pensions, IRA Distributions.
  2. Enter any 1099-Rs received in 2021.
  3. Click on Disaster Carryovers at the top left of the screen.
  4. Locate the Qualified Disaster Distributions (Form 8915F) section of the input.
    • If you proforma'ed this client from Lacerte 2020 or 2021, some entries will already be made here.
  5. Enter or verify the disaster distribution information here.
  6. Enter any Repayments made before filing 2021 tax return, if applicable.

Attaching Form 8915-F as a PDF

Lacerte can automatically generate and attach a PDF of this and other required forms when you e-file. To verify you have this setting activated:

  1. Press Crtl + O on your keyboard, or click the Settings menu at the top of your program, and select Options.
  2. At the top of the user options window, select the Setup tab.
  3. In the Program Options section, locate the item labeled Auto Generate and Attach PDFs to EFiles.
  4. Verify this item is set to Yes. Click OK to save your settings and close the window.

If you don’t have auto-attachments enabled, an informational diagnostic will generate to remind you to attach the form manually. See here for help attaching a PDF.

To generate the 8915-E:

  1. Go to Screen 13.1 Pensions, IRAs (1099-R).
  2. Enter the Form 1099-R information as received. Make sure to complete the Payer Information section if any federal or state tax withholding is present.
  3. Scroll down to the Form 8915 (Qualified Coronavirus-Related/Disaster Relief for Retirement Plans) section.
  4. Enter the amount of Qualified coronavirus-related / disaster distributions included in gross distribution.
  5. Enter any Repayments made on or before 12/31/20 and Repayments made after 12/31/20 but before filing return. These repayments will reduce the distribution subject to tax in 2020.

Lacerte will generate Form 8915E and elect to spread the taxable amount over 3 years by default. If you don't want to make that election, check the box labeled Elect not to average over three years.

Number of months of disaster payments

If this 1099-R is:

  • from a pension for which you use the simplified method to calculate the taxable amount,
  • and some, but not all, of the payments reported on this 1099-R are qualified disaster recovery distributions

You must enter the months your client received disaster recovery payments in Number of months of disaster recovery payments, if simplified method. Under this circumstance, two simplified method worksheets will be completed - one for the qualified disaster recovery distributions, and one for the other pension distributions. The number of months you enter will be used to calculate line 5 of both simplified method worksheets.

If this 1099-R doesn't meet both of the above conditions, you can leave the Number of months of disaster recovery payments, if simplified method field blank.

Limitations on multiple disasters

The program assumes all qualified disaster distributions are related to a single disaster, and by default applies the overall $100,000 limitation on Forms 8915-C, 8915-D, and 8915-E.

If you have multiple disasters, and the qualified distributions are greater than $100,000, then you must manually limit the sum of the amount(s) you enter in Qualified coronavirus-related / disaster distributions included in gross distribution to an overall $100,000 per disaster event. Then, check the box to Suppress $100,000 limitation on 2020 Form 8915-E (multiple disasters, manual limitations being applied). The program will apply no limitations on Form 8915-E when this box is checked.

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