My spouse took a small IRA distribution (not early, she was 59 1/2) in 2020 ($5000). She lost her job due to covid. The distribution can be classified as a Covid related distribution and thus special tax treatment (spreading the income out over 3 years if you would like to do this). In Jan 2021, she decided she could repay $4000 back to the IRA, allowed by the CARES Act and she did this. So, she has a repayment to the IRA and a distribution of $1000. I use Turbotax (TT) premier, desktop. So the 1099r for $5000 is straight forward in TT. But in addition to entering the transaction in TT for the 1099r, is the $4000 repayment then also treated as a contribution where we would get a deduction? The only thing I can find on the IRS site is treat a repayment as a contribution.
