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Deductions & credits
No, you are not being double-taxed. The taxes withheld were only applied to 2020 because they were withheld in 2020. There aren't split up over three years only the distribution is split up. You most likely got some of the taxes withheld refunded on your 2020 return. You can see the tax withheld on line 25b of your 2020 Form 1040. You won’t enter any taxes withheld on your 2021 tax return for the Covid distribution, you only enter the steps mentioned above. And will have to pay the taxes (depending on your tax bracket for 2021) on the second portion of the Covid Distribution.
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February 10, 2023
5:01 AM