Thanks for your post (and for everyone else's post as well). Let me be clear about my case and concern.
None of these withdrawals are early withdrawals and I do not have future plans to pay any of these withdrawals back to myself over time.
I had 3 1099-R's in 2020; each from a different IRA account.
First 1099-R: On Jan 3 2020, the distribution was for $2,566.36 and $256.63 federal tax was withheld. I marked this distribution as NOT COVID-19 related.
Second 1099-R: On Jan 30 2020, Mar 2020, May 2020 and June 2020, $4,085.20 was due to COVID-19 and $4,527.22 was NOT due to COVID-19. A total of $79.72 in federal tax was withheld. I indicated $4,085.20 of the total amount was due to COVID-19 and the rest of the amount was not due to COVID-19.
Third 1099-R: In Aug 2020, Oct 2020 and Dec 2020, $9,984.00 was all due to COVID-19. A total of $859.30 federal tax was withheld. I indicated that the entire amount was distributed as income due to COVID-19.
Why is TurboTax saying that the total amount of distributions due to COVID-19 is $16,636 and thus $5,545.33 could be declared as additional IRA income in 2020, 2021 and 2022?
I thought that TurboTax would compute that my COVID-19 related distributions totaled $14,069.20; thus only $4,689.73 would need to be declared as additional IRA income in 2020, 2021 and 2022... and furthermore, I would have to declare the additional $7,093.58 non-COVID related IRA distribution in 2020 because this amount could not be spread out over 3 years.
