Pacun Posted February 27, 2021 Report Share Posted February 27, 2021 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? Quote Link to comment Share on other sites More sharing options...
Possi Posted February 27, 2021 Report Share Posted February 27, 2021 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 1 Quote Link to comment Share on other sites More sharing options...
Randall Posted February 27, 2021 Report Share Posted February 27, 2021 I do the same as Possi with ATX. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 27, 2021 Author Report Share Posted February 27, 2021 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? 1 Quote Link to comment Share on other sites More sharing options...
Randall Posted February 27, 2021 Report Share Posted February 27, 2021 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. 1 Quote Link to comment Share on other sites More sharing options...
faraha Posted February 28, 2021 Report Share Posted February 28, 2021 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 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 28, 2021 Report Share Posted February 28, 2021 You have to check each state. 1 Quote Link to comment Share on other sites More sharing options...
faraha Posted February 28, 2021 Report Share Posted February 28, 2021 Thank you Quote Link to comment Share on other sites More sharing options...
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