You could allow for the tax due by adjusting your withholding at work. If you, and your spouse if married, have regular employee jobs and receive W-2s, you could go to the IRS withholding calculator and calculate a new amount to have withheld from your taxes using your W-4 forms. Enter the 1/3 of the Covid distribution as additional income not from your job. The withholding calculator will take that into account and tell you how to adjust your W-4 forms so that you have enough tax withheld for both your jobs and the extra income.
