How do I input 1099-R Distributions as taxable over three years under the CARES Act and prepare Form 8915-E in a 1040 return using CCH Axcess™ Tax and CCH® ProSystem fx® Tax using worksheet view?

  • Article Type:
  • How To
  • Last Modified:
  • 03/24/2021

Objectives

Generate and populate Form 8915-E deferral in an Individual return.

Environment

CCH® ProSystem fx® Tax
CCH Axcess™ Tax
Individual
1040
Worksheet View
WSV
 

Procedure

Input has been added to the IRS 1099-R to indicate the disaster, date of distribution and the amount to assign to the disaster.
  1. Go to IRA, Pensions, and Annuities (1099-R) worksheet.
  2. Expand Section 1 - Distributions from Pensions, Annuities and IRAs (IRS 1099-R).
  3. Select Detail.
  4. Expand Section 1- IRS 1099-R.
  5. Input applicable information.
  6. Expand Section 2 - Other.
  7. In Lines 22-24 - Disaster Information:
    • In Column Code, select Coronavirus-related (FA).
    • In Column Date, input date(s) of early retirement distribution to be deferred.
    • In Column Amount Assigned, input amounts of early retirement distribution.
  8. Calculate the return.

Notes

  • If the disaster code is any 2020 disaster code other than FA (coronavirus related) and the date of distribution is before the disaster occurred, then the disaster input will not be reported on Form 8915-E. 
  • If the election to not pay back the distribution over three years is made or if a portion was repaid prior to filing the tax return, additional information will be required see the following:
    1. Go to IRA, Pensions, and Annuities (1099-R) worksheet .
    2. Expand Section 7 - 8915-E - Qualified 2020 Disaster Retirement Plan Information.
    3. In Line 1 - Enter applicable TS code based of 1099-R input.
    4. In Line 20 - Elect to not spread taxable amount over 3 years, select the checkbox to not defer the taxable income.
    5. In Line 28 - Total amount of repayments made before filing 2020 tax return, if a portion was repaid before filing the return for qualified retirement plan distributions other than IRAs OR
    6. in Line 29 - Total amount of any repayments made before filing 2020 tax return for qualified retirement plan distributions from IRAs or Roth IRAs

Additional Information

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