I took a COVID 19 Cares Act Withdrawal in 2020 and paid taxes on 1/3 of the amount during the 2020 tax season. 2021 is year 2 and I believe I correctly entered the taxable amount as 1/3 of the original distribution. I don't believe the tax on that 1/3 is being calculated correctly. TurboTax is taxing the 1/3 amount by more than 50%. There shouldn't be a penalty. What am I doing wrong? (Example: 2020 COVID Withdrawal $100k. Paid taxes on $33,333 in 2020. In 2021, $33,333 is counted towards income to pay taxes on.) I had finished my taxes waiting on TurboTax to add the ability to calculate the tax on the 2020 COVID 401k Withdrawal. Please help!
