Form 8915-E Reminder

As attention turns to year-end tax planning and tax projections, it is important to remember the upcoming tax effects for individuals who received coronavirus-related distributions from retirement accounts during 2020.  These distributions were reported on Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments.  (See discussion on pages 8 to 14 of the Tax Year 2020 M+O=CPE Individual Tax Year-End Workshop Reference Book.)

One-third of such distributions will be included in the individual’s 2021 gross income, unless the individual elected to include the entire distribution in income on the 2020 return.  Individuals also have the option to repay some or all of the previously-distributed amounts to a retirement plan. 

Practitioners should consider the effect of these distributions when making tax projections for the 2021 tax year and/or planning adjustments to withholding or estimated tax payments.

We will discuss the reporting issues related to Form 8915-E for the 2021 tax year in our Individual Tax Year-End Workshop seminars this coming December and January.