@nolanwittrock wrote:
@DoninGA
Why would it not decrease the taxable amount of the distribution? If you have repaid your distribution, you would owe zero tax. So changing that option, for example, should make a huge difference in the taxable amount. Maybe I am not understanding your comment.
The amount on 1040 Schedule 2 line 6 is $95. Not sure where that is coming from.
It does make a difference. Removing the taxable amount of the distribution by indicating you paid it all back leaves a 0 amount on line 4b.
Any federal income taxes withheld and reported in box 4 of the 1099-R is entered as a tax payment on Form 1400 Line 25b, regardless if you paid the distribution back or not.
Schedule 2 Line 6 is the 10% early distribution penalty which also should not be entered if this was a Covid-19 distribution.
It sure looks like you will need to clear the return and start over.
