@macuser_22
It is a distribution, but if you repay it, it is not considered to be income.
Turbotax is not (in general) treating a distribution that I have repaid as income. If I simply don't report that I made a $6k IRA contribution, all the numbers are correct, and my 1040 does not show the Covid withdrawal as part of my income. My adjusted gross income is $116,480.
Only when I report the $6k IRA contribution does Turbotax think that my entire Covid withdrawal needs to be included with my taxable income, which bumps by AGI to over $206,000.
The fact that I made an IRA contribution shouldn't change whether or not the Covid withdrawal is taxable income, but an error with TurboTax is forcing it to.
