@Michelle1005 wrote:
But will this affect my tax bracket each year because it is showing all 3 years under gross income? I know it affected the stimulus by disqualifying us and we were unable to get the break in taxes on the unemployment benefits. With higher gross income each year comes with elimination of certain credits so will we be penalized all 3 years on the gross income? So this full amount of income will show all 3 years?
No the TurboTax income summary is just for your information. Only the amount on the 1040 line 4b or 5b is added to your AGI. If you choose to spread the tax over 3 years then that amount should be 1/3 of the distribution amount on line 4a or 5a. If that puts your AGI over $140,000 then you do not qualify for the unemployment $10,200 exemption.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
