@Opus 17 wrote:
The draft version of form 8915-E only allows the distribution to be split into 3 equal installments. If you take the split, then 1/3 the distribution will be added to your income for 2020. Your tax for 2020 is based on the combined total of all your income, deductions, dependents and credits for 2020.
That is only one of the reasons for the 8915-E. It also allows a COVID related distribution in the first place (and eliminates the early distribution penalty if that applies) even when the distribution was taken in cash and not going to be paid back or tax spread over 3 years.
**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.**
