My wife qualified for and took the full amount allowed out of her retirement (100,000) under the CARES act. The plan withheld state taxes of $8,000. I'm spreading the amount over three years as the IRS allows. However I feel like I've already paid the state tax on the full amount and should not have to report the $33,333 on this years state return correct? Turbo tax won't let me override the amount on the state form.
