RobertB4444
Expert Alumni

Retirement tax questions

@Zincougt  For the 2020 return you were offered the option to take two thirds of the distributions that you received from your retirement accounts (up to $100,000) and put the taxes on that 2/3 off until another year.  

 

If you took advantage of this deal then all of the taxes that you had withheld on that distribution were used on your 2020 return.  If you enter the amount of the distribution that you are paying taxes on with your 2021 return (it will be 1/3 of the total) there will be no withheld taxes to apply to that amount.  In addition, if you already filed and received a refund then you are correct that you will have to pay taxes on this amount out of that refund.

 

However, if you filed and did not include the amount that you pushed off from last year the most likely thing is that the IRS will hold your refund and will review your return and find that you owe additional tax and make the adjustment themselves.  So don't do anything about amending your tax return until after you have heard from the IRS or after they have finished processing your return and you have received a refund.

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