This article will help you generate Form 8915E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (or Form 8915F for 2021 and 2022), and attach the completed form to your client's return for e-filing. 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 the 8915-F:
- On the left-side menu, select Income.
- Select Pensions, IRAs (1099-R).
- Click on the Disaster Carryovers hyperlink at the top right of the screen.
- Select the 2020 Disaster Distrib. section along the top of the input.
- Enter the amounts from 2020 Form 8915E.
- Enter a 1 in 1=disaster related to Coronavirus.
- Scroll down to the Other Than IRAs subsection.
- Enter the remainder of the information from 2020 Form 8915. Be sure to enter any Repayments made before filing 2021 tax return here or further down under the IRAs subsection.
ProConnect Taxwill generate Form 8915-F with your entries.
For tax year 2020 returns
To generate the 8915-E:
- On the left-side menu, select Income.
- Select Pensions, IRAs (1099-R).
- Select the Details button at the end of the desired row.
- Complete the Payer Information section if any federal or state tax withholding is present.
- Scroll down to the Form 1099-R section and enter the amounts from the Form 1099-R your client received.
- Select the More button at the top right of the input area, and select the Less Common Scenarios section.
- Scroll down to the Form 8915 (Qualified Coronavirus-Related/Disaster Relief for Retirement Plans) section.
- Enter the amount of Qualified coronavirus-related/disaster recovery distributions included in gross distribution.
- 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 distributions subject to tax in 2020.
ProConnect Tax 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.
