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@dfellen32  wrote:

Yes I found the section and entered all of my info. My portion this year is $20,000. I was getting a refund of $3,000 and once I put in my $20,000 portion it said I owe $6,000. I already paid 12,000 last year on the original $60,000. I was going to have a tax preparer double check it. I think it maybe counting it as income and popping us up into another bracket. I didn’t think it would do that since it was a disaster withdrawal that I already took out 20% taxes out on it last year. 


The 2nd year of the 2020 Coronavirus-related distribution is reported on the 2021 federal tax return Form 1040 on either Line 4b or Line 5b as ordinary income and taxed at your current tax rate.

 

All the federal taxes withheld from the 2020 distribution was entered on your 2020 Form 1040 as a tax payment on Line 25b.  You received a 2020 tax refund for the overpayment of the taxes withheld on the 2020 return.

The taxes withheld are not spread over three years, only the distribution.