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Deferred Pensions

Annie D
Level 3

In 2020 several clients chose to have their early withdrawals of pensions distributed over three years.  The 2020 software thus included only 1/3 of their distribution yet 100% of their federal and state taxes withheld.  I expected to see the 2021 software show the next 1/3 of their distribution as income yet that is not the case.  Does anyone know if Proseries will be updating the software to include that distribution? 

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5 Replies 5
Just-Lisa-Now-
Level 15
Level 15
It will be another 8915 form, maybe it hasnt been released yet (it took a long time for it to be available in 2020)? I havent checked. But this is a good reason NOT to transfer clients into the 2021 software yet.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Just-Lisa-Now-
Level 15
Level 15
So the 8915E for reporting this, says it wont be ready until the end of February...these clients that deferred will be on hold until then.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Annie D
Level 3

Is there a way I can sort my Homepage to see exactly which clients are affected?

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jeffmcpa2010
Level 11

Likely it may be included in one of the many releases between now and  the end of January when the IRS may begin accepting returns.

 


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qbteachmt
Level 15

I wanted to clarify this, since it was a common misunderstanding last year: "The 2020 software thus included only 1/3 of their distribution yet 100% of their federal and state taxes withheld."

The withholding is against potential taxes owed, for the year, no different than any other withholding. That's why it has nothing to do with "1/3 of their distribution" because it isn't allocable like that.

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