Famous 8915E for not paying penalty due to Covid not bad

[Pacun]

So basically if someone withdrew due to covid less 100K, they are electing to use 1/3 reporting and no withholding... it is as simple as ignoring the 1099R, go to form 8915-E, check part A for Coronavirus, click on lns1-4 tab, enter $60,000 columns a and be and that's all. (in this case client withdrew $60K)

That will transfer $20K taxable without the penalty.  If person returned $15K, all you have to do is to enter $15k on line 10 and $5K will be taxable. 

Now, the question for withholdings, I guess you will enter it on a blank 1099-R. Is that the way you are doing it or are you entering the total distributions on box 1  1099-R and taxable amount 0 on 1099-R box 2?

Also, will I be allowed to create the efile file simply by attaching 8915-E as pdf?

 

[Possi]

I use Taxwise, same CCH company but different software. I enter the 1099R completely. There's a worksheet on the 1099 input page that leads me to the 8915E. 

I have been able to create the 8915E as a pdf and attach, yes. 

I hope this helps, although it's different software. 

One sidenote, I am encouraging my clients who have refunds AND are taking the 3 yr option to apply a portion of the refund to soften the blow next year. The following year, they're on their own. LOL 

[Randall]

I do the same as Possi with ATX.

 

[Pacun]

1 hour ago, Randall said:

I do the same as Possi with ATX.

 

After Possi posted that, I checked and if entered correctly on 1099-R, you don't even have to invoke 8915-E... it is brought automatically and it seems to be correct.  

will I be allowed to create the efile file simply by attaching 8915-E as pdf?

[Randall]

3 hours ago, Pacun said:

After Possi posted that, I checked and if entered correctly on 1099-R, you don't even have to invoke 8915-E... it is brought automatically and it seems to be correct.  

will I be allowed to create the efile file simply by attaching 8915-E as pdf?

Yes, it worked for me.

 

 

[faraha]

does the 3 year spread work at the state level . do all states follow federal or are there exceptions.  I am specifically looking at MN resident return. Thanks

[Lion EA]

You have to check each state.

[faraha]

Thank you