@Matt94 wrote:
Do we manually put in the amount on our 1099R that is taxable to spread out the money we took? For example I took 11,200 and I put in the full amount. I don’t see where it split up the tax liability. Is that on me to go in and change on the 1099R?
You enter the Form 1099-R as received. If your distribution was Covid-19 related then you answer the questions presented concerning the distribution. The program will ask if want to pay tax on the entire distribution in 2020. If you do not then do not check the box when the question is asked. One-third of the taxable distribution will be entered on the federal tax return Form 1040 on either Line 4b or 5b as taxable income depending on whether the distribution was from an IRA or a Pension plan.
