@Shelly330 wrote:
Yes, we are wondering the same as well. We took $100,000- $50,000 of that was related to the COVID distribution but $25,000 was witheld for federal taxes at the time. It feels like we are being double taxed as well as there is no where to enter the taxes withheld.
All of the federal taxes withheld from the 2020 distribution were entered on your 2020 tax return as a tax payment. Those taxes were included in the 2020 tax refund you received.
Only 1/3 of the 2020 Coronavirus- related distribution was entered on your 2020 tax return as taxable income if you selected to spread the distribution over 3 years.
None of the 2020 federal taxes withheld could be spread over 3 years, only the 2020 distribution.
