How To Pay Taxes Over 3 Years ON CARES Act Distributions! (Tax Form 8915-E Explained)

by | Sep 19, 2022 | Qualified Retirement Plan | 28 comments

How To Pay Taxes Over 3 Years ON CARES Act Distributions!  (Tax Form 8915-E Explained)




Tax Reporting For Coronavirus Distributions (Tax Form 8915-E Explained)
#Caresact #tax #401k #covid
***Please note this video is produced for educational purposes ONLY and not to be taken as legal or tax advice. I do my best to insure the accuracy of these presentations, but mistakes can be made so carefully read the forms, or consult with a professional in the area you live if you need tax assistance.***

►You can find the downloadable handout here from the IRS website:
►2020 Form 1040
►Form 8915-E
►Form 8915-E Instructions:

I know this video is as long as your high school math class so here are time stamps:
⌚ Time Stamps so you can jump to any point in the video
►0:00 – 0:53 Start
►0:54 – 8:28 Cares act distribution 8915-E Example 1 Distributions from NON IRA Account
►8:29 – 12:40 Cares act distribution 8915-E Example 2 Distributions from IRA Account
►12:41 – 17:07 Form 8915-E Instructions overview

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28 Comments

  1. C K L

    Hi! I took some money out with Cares act in Nov 2020. I didn’t understand that I had to repay a third in a year. I thought I had 3 years to pay back. In 2021 I had a work related injury and was dealing with STD and multiple surgeries. I just got a letter from the IRS assessing penalties on this distribution from 2020. How do I avoid paying penalties or is it too late? (I used Ramsey smart tax and unfortunately this scenario and form 8915-E was not part of the software. Arrgghh)

  2. E_ThaDon_W

    Thank you for posing this. I have one question. If I had federal taxes withheld on my 1099-R form where does that information go?

  3. Ira Horowitz

    Would you please show a completed 2915-F for Covid with the 1/3 payment as an example

  4. Beat Dad

    New Subscriber. Thank you for these videos on the CARES Act. I've been searching and couldn't find anyone/anything as clear as yours. One question, I'm assuming that for tax year 2021 and 2022, this form will be the same even though the 1099R was for 2020? I think it was implied, but wanted to confirm. Thanks.

  5. Ray Eduardo

    How do I do my taxes the second year if I divided it over 3 years

  6. CaptainClapTrap

    Hi. So now it's 2022 and I'm getting ready to file the 2nd year's worth of the 3 year spread of tax on 2020's coronavirus 401k withdrawal. How do you file the 2nd and 3rd year?

  7. Money and Life TV

    **Update for tax year 2021**: Hi everyone, if you are wondering how to spread-out the 3 year distribution in 2021 please see my newest video on this topic: https://youtu.be/_CwdW8mNV2o

  8. Tina Plascencia

    I elected to spread the amount over 3 years do I need to refile anything in the coming years 2021 and 2022 or does it automatically distributes the amounts from the 8915E 2020 filing?

  9. R B

    Please make a vid on 2nd and 3rd year

  10. jarnaginra

    So now it’s 2021 tax season, how do we represent or show that the taxes are being spread out for the second year of three? Part 2 line 9. Is there a form this year?

  11. CESAR MEREJO

    Great video, well explained. I do my own taxes via turbo tax, I am on my second year of paying my retirement distribution, I am confused!!!, would I receive another form from my retirement plan this year, how do I report my second payment? please help!!!

  12. Ali Rambo

    Hello, if I took 100,000 from a retirement account in 2020 and chose to distribute it over 3 years, what form do I use for 2021..8915 E or F. Thank you!

  13. Sergey Parshin

    Question on the repayment: is an existing rollover IRA considered as a qualifying account that I can male repayment to? funds were pulled as CRD from 401K at the time i was laid off by that employer. thanks

  14. Marcel Victor

    in your example we pay on 2020 tax on the amount of 10000. In the following year 2021 what we need to do with the remainder of 20000 . where and how to report and how much on what form. Thanks

  15. Ann Blankenship

    Can you add a video on how to report the 2nd installment of the COVID Distribution on 2021 taxes.. I am using CASHAPP (formerly Credit Karma Tax) and it is really confusing!

  16. Siang Mawi

    How do I file for 2021 tax year? I did elect mine to spread over 3 years ($1995 each) year. Thanks

  17. BOj iam

    I received $99k cares act 401k distribution on November 2020.
    I elected to spread the taxes for 3 years.
    Can repay the whole $99k in an IRA on November 2023 and do tax amendments for tax years 2020, 2021, and 2022?

  18. TigerAmit

    Mike, Part-III, Line 17 of 8915-E, you entered 10K. Is it possible to enter 20K for 2020, 5K for 2021 and 5K 2022 ? or any other proportion to total up 30K in three years ?

  19. Andre West

    Mistake Correction: Line 6 says do one of two things. You skipped it altogether when you read the first statement. However, the part that says "Otherwise, enter the amount from line 1, column (b). There is a value in column b so that number should be entered on line 6.

  20. GunmetalSnail

    This video is very informative, except for the part at 5:41 where you say to skip Line 6, even though the instructions say to put the amount from Line 1, Column B if there is nothing in column C. You don't put anything, even though there is clearly an amount in Column B in your example.

    This is frustrating because I'm trying to follow these instructions to the letter and having two different sets of instructions presented is confusing me.

  21. Angie Thieu

    Thanks for helpful information!

  22. CECE1839

    Very informative, very helpful, and timely, Thanks!

  23. RBeam6

    Thanks for this. This was the last thing I needed to finish and was about to start googling all the different references they make but luckily found this first and that 90% of it didn't apply to me.

  24. Gwendolyn Gies

    Should I be putting my gross distribution in a1 or the amount I actually received after taxes? Thank you so much!!

  25. Marty Winn

    Thank you for explaining this in depth. Other videos did not.

  26. Latisha A.

    Can you please give any advise when 401k puts code 1 on 1099-R instead of 2 for cares acts distribution? Having the 1 causes what I owe to go up by exactly 10% on my taxes (giving me a penalty to pay) and if I act as if they put a 2 it goes down 10%. I have already paid taxes on this when It was distributed.

  27. noisehonk

    QUESTION: I live in NY currently– can I move to florida and avoid the state taxes on the deferred payment plan in year 2 and 3?

  28. Judith Higbee

    QUESTION: My husband and I file jointly, however the distribution for COVID came sole from my IRA. Why would my husband need to file a separate 8915e? Thanks. Judith

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