dmertz
Level 15

Retirement tax questions

No, a repayment is not a contribution.

 

When you indicate to TurboTax that the distribution was a Coronavirus-Related Distribution, TurboTax will eventually ask for you to enter the amount paid back.  TurboTax will include that repayment on Form 8915-E.  If the choice was to spread the income equally over 3 years, the repayment will eliminate any of this from being taxable on the 2020 and 2021 tax returns and will leave only $1,000 taxable on the 2022 tax return (unless repaid by the due date of the 2022 tax return which would eliminate the remaining $1,000 from being taxable on the 2022 tax return).  If the choice was to include the entire amount on the 2020 tax return, $1,000 will remain taxable on the $2021 tax return (which could still be paid back within 3 years, requiring amending the 2020 tax return).