Retirement tax questions
If you know for sure that you will repay the whole amount before the due date of the return then select that you repaid all of the distribution.
On the "Do you want to pay all the tax this year" screen select the "pay entire tax on the COVID distribution in 2020" to avoid having to enter information about this in the next two years (you won't pay any tax since you repaid it all). If you do not select this the amount will be split up in three years and your repayments will be split up into 3 years as well.
You can verify your entry on line 5b on Form 1040, it should be $0 taxable:
- Click on "Tax Tools" in the left menu
- Click "Tools"
- Click "View Tax Summary" in the Tool Center window
- Click on "Preview my 1040" on the left
