@smbosworth wrote:
No, I am actually trying to pay it all this year. So, the only taxable amount on Line 5B should be the $22,723 less the $15,000. If I check the 3 years, I owe nothing this year. But since I am trying to pay all the tax this year, it is making the taxable income $13,331 not the difference of the 2 numbers which is $7,723. That isn't correct, I don't think.
"This year" is 2021. You previously said you repaid $15K in 2020.
What you pay in 2021 goes on your 2021 tax return next year. You can replay it all in 2021 and be taxed for that on your 2021 tax return.
For 2020 since you repaid more then 1/3 there is no 2020 tax.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
