For 2020 all you had to do is enter the taxes withheld in box 4 of your Form 1099-R when you enter all your Form 1099-R information into TurboTax. The $1,500 will then be included on line 25b of your 2020 Form 1040. The taxes withheld do not get split up over 3 years and therefore are not entered in 2021 or 2022. Most likely (depending on your tax bracket) you got some of the $1,500 withheld refunded on your 2020 tax return if you only claimed 1/3 of the Covid distribution in 2020. Since the taxes withheld are only applied towards 2020, I usually recommended looking into adjusting tax withholdings if necessary for 2021 and 2022.
Please be aware generally, if you are in a higher tax bracket then the 15% withheld won’t cover all taxes due on the distribution because the distribution is taxed according to your tax bracket.
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