@Mitchsorensen wrote:
I am 74 years old and withdrew a number of large amounts from my IRA during the 2020 calendar year as I was not able to find employment during that time . I used to work about 39 hrs a week and did not work at all in 2020 except for about 5 hrs. earning $60. Is there a way to spread the increased tax burden ( I paid already 25000 in fed income tax when I made the actual withdrawal) I still have a $5000+ tax liability and was wondering if there are any means of spreading that tax liabilty over a number of years.
I have always filed a joint return with my spouse and was wondering if it would be more advantageous for me to file married filing jointly.
Yes. That is what the new 8915-E form is for.
CARES Act retirement plan COVID-19 related distributions can be paid back over 3 years or the tax spread over 3 years.
That is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS. There is no telling how long it will take the IRS to make the electronic form available. Typical it takes the IRS 2-4 weeks to release the electronic form specifications after the paper version is released. e-file providers must program from the electronic specifications.
The draft paper form is here:
https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf
Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
