- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
The answer to your question will depend on the states that are involved and whether they have conformed to taxing the withdrawal over three years instead of one. Each state may decide to handle this situation differently.
Pay close attention to how the distribution is handled on your 2020 state return. It is possible that the entire amount has already been included in your state income if your state did not agree to tax it over three years.
Rest assured that TurboTax will ask all the necessary questions to make sure things are handled properly on your state returns in years two and three.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 22, 2021
6:33 AM