@krish008posted updated information in the NY COVID distributions delay thread related to this issue.
Apparently in most cases, NY state is NOT requiring form IT 558 simply b/c you withdrew funds from an IRA due to COVID-19. Initially NY state was going to require that you included your entire covid-related IRA withdrawal in you NY state adjusted gross income for 2020, whereas the feds let you spread the withdrawal amount over 3 years. But NY state changed their approach and decided to follow the federal rules. So if you took a withdrawal from an IRA due to Covid-19 and chose to spread the income over 3 years, you do NOT need NY state form IT 588. NY state, like the feds, is allowing us to spread that income over 3 years.
The bug in the TT software is fixing it so that the software doesn't assume you need form IT 588 when it's not required. Hopefully they get it done by March 19th!
