DanaB27
Expert Alumni

Retirement tax questions

The box that you checked gives you the option to include the whole COVID retirement distribution in 2020 instead of spreading it over 3 years. Therefore when you checked it lowered your refund because your taxable income and as a result your tax increased.

 

If you uncheck it it will split the distribution into 3 parts you can check that on line 5 of Form 1040. The taxes withheld cannot be split the whole amount withheld be credited to 2020.

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