8915 F 2020 Coronavirus Distributions for 2021 Tax Returns - YouTube

In tax year 2020, many taxpayers were eligible  for a coronavirus-related distribution  

from their retirement plan. These  distributions were generally not  

subject to the 10% additional tax for early  distributions, and are included in income  

ratably over three years in 2020, 2021 and 2022. To minimize taxes, some taxpayers may wish  

to repay all or a portion of the 2020  coronavirus-related distribution within  

three years after the date of the distribution. If repayment occurs during this three-year period,  

generally, there would be no federal  income tax on the distribution. 

In some cases, amended returns may  need to be filed for prior years  

if federal tax was paid for an amount that  was later repaid to the qualified plan. 

If a taxpayer received a  coronavirus-related distribution in 2020 

and that amount was entered in Drake Tax 2020,

information from the 2020  return will update to 2021. 

If not, simply enter the 2020 information  on the 8915F screen in Drake Tax 2021. 

To enter or review information for  2020 coronavirus-related distributions,  

open the 8915-F screen. You can access this screen  through the Adjustments tab and choosing 915F. 

At the top of the screen, select whether  the distribution was for the taxpayer or  

the spouse. Then select calendar year 2020  to indicate the year the disaster occurred. 

Since this was a 2020 disaster distribution for  Coronavirus, also check the Coronavirus box. 

If data was pulled over from Drake 2020,  these fields should already be completed. 

To enter prior-year distributions and repayments  amounts, click the blue hyperlink for Form 8915-F  

Prior-year Distributions and Repayments. For Pensions Worksheet 2 and 3,  

enter or verify the taxable 2020 Disaster  Distribution amount from the 2020 Form 8915-E,  

line 9 on the applicable lines on the screen.  This is the taxable amount for pensions from 2020. 

For IRA Worksheet 4 and 5, enter or verify  the taxable 2020 Disaster Distribution amount  

from the 2020 Form 8915-E, line 17 on  the applicable lines on the screen.  

This is the taxable amount for IRAs from 2020. If the return was updated from Drake 2020,  

these amounts will be carried forward  automatically. Clear the flags by clicking F4,  

once amounts have been verified. Next, enter the total repayments  

made before filing the 2020 return  on Line 1 for the distribution type.  

Pension repayments are entered in Worksheet  3, IRA repayments are entered in Worksheet 5. 

Enter the amount from the 2020 Form 8915-E,  line 10 for pensions, and line 18 for IRAs. 

If data was pulled over from Drake 2020,  these fields should already be completed. 

Finally, enter the total repayments made  before filing the 2021 return on Line 4 for  

the distribution type. Worksheet 3, line 4 is  for pensions. Worksheet 5, line 4 is for IRAs. 

When viewing the return, the taxable  amount will be calculated on Form 8915-F 

and will flow to line 4b or  5b on Forms 1040 and 1040-SR. 

Send Form 8915-F to the IRS along with  the e-filed return as a PDF attachment. 

In View/Print mode, you should have an  EF Message describing the steps needed  

to attach the document. First, click the “Attach  

PDF” button on the toolbar. Form 8915-F will automatically be  

attached to the return – verified by a green  check mark in the EF PDF Attachments window. 

Then, recalculate the return  to clear the e-File message. 

Drake Tax 2021 will calculate  a Carryover Worksheet. 

It will include a line for Disaster  Distributions taxable in 2022. 

For more information, visit DrakeSoftware.com