Many folks have been asking about the what if I paid X in 2020 or had X withheld by my employer in 2020, how will that impact my 2021 8915F form? I think it's a very valid question that has not been fully answered on this forum and all the responses are based on assumptions. I get it taxes paid in 2020 should be recorded in 2020, but the Covid 401K Relief is not a 1 year done deal, for most is a 3 year deal and as such any software performing calculations to make it SIMPLE to consumers needs to understand this. In my example, I took out 30K and my employee withheld 10% or 3K. Turbo Tax did the math to spread the taxes over 3 years, but to do that it needs to factor in the 3K and although I agree that the 3K needs to be recorded on year one, the questionnaire needs to be smart enough to let users just enter all the info from the 1099 and it should do the math automatically. Having the user enter 1/3 here and there makes it really confusing. The simple software design should let the user enter the basic info and do the math automatically. So in conclusion, if anyone has a real answer let us know.
