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Partial Coronavirus Related Distribution repayment treatment
Hello, any help is appreciated. I am looking an answer on a specific question regarding CRDs: if I took a $30,000 CRD distribution in 2020 and elected to pay tax over 3 years. And, I paid taxes on $10,000 for 2020 taxes. If I now pay $10,000 back into my 401k in 2022 but before I file my taxes for 2021 in April, do I owe any tax liability for my 2021 taxes? In other words, do 2022 repayments done before you file your 2021 taxes count as 2021 repayments and does a partial repayment exactly for 1/3 of the CRD eliminate the tax liability entirely for that tax year?
‎January 21, 2022
1:51 PM