Get your taxes done using TurboTax
1/3 of your Covid related distribution would be included in this year's income. So if you indicated $6000 was Covid related distribution, $2000 would be included income with your 2020, 2021, 2022 tax returns. The amount of tax is calculated separately each year when you complete your tax return for 2020, 2021, 2022.. The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option if the entire distribution is pushing you into a higher marginal tax bracket in 2020. You may end up paying less tax if you spread the distribution over the 3 years.
If you are having problems with the calculation, trying deleting the 1099R and re-entering it. After you have logged in and are in your return in TurboTax Online:
- Go to Search at the top of the screen.
- Enter Form 1099-R in the search box.
- You will see a Jump To function that will take you to the 1099-R input screens.
- There delete the 1099R in question by clicking on the trash can next to the form
- Then add a new 1099R and manually enter your 1099R.
At the financial services screens, click "Change how I enter my form" then "Type it myself"
Make sure and check the Covid Distribution box in Uncommon Situations when you re-enter.
