I've gone through and input my 1099 from my COVID 401 withdrawal. I told the software to spread the taxable amount over the 3 years. When I do this, it doesn't add 1/3 of the withdrawal to my income, rather TurboTax reduces my taxable income for this year by 2/3 the amount of my COVID withdrawal. Shouldn't it add the 1/3 to my taxable income resulting in additional taxes? As of now, it has resulted in a return which doesn't seem correct.
