Retirement tax questions

macuser_22 · ‎April 17, 2021

@Melody25 wrote:

I'm having trouble with how TT is calculating the total taxable amount for my early withdrawal from my IRA. It's dividing $40K over 3 years ($13,333) in line 17 instead of $20K over 3 years ($6,666). Can someone help me understand why it's calculating the $13,333 instead of $6,666? I withdrew $40K and repaid $20K in December 2020, so the taxable amount should be $20K. Thank you

The 2020 taxable amount is zero because you repaid $20,000 of the $40,000 distribution so only the remaining $20,000 will be taxes in 2021 and 2022. The 1/3 (and more) of the distribution taxable in 2020 was paid back.

**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.**