@vinay007 wrote:
I did the exact same thing. But my taxable income or my tax return did not change after entering the distribution. Am I doing something wrong?
You have to enter the 2nd year of the 2020 distribution in both boxes.
If the 2020 distribution was from an account that was Not an IRA
Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 9
2020 Form 8915E, line 9, if you checked the box on that line, enter 0
2020 Form 8915E Line 9
If the 2020 distribution was from an IRA account
Enter 1/3 of the amount from the 2020 distribution in both boxes for Line 17
2020 Form 8915E, line 17, if you checked the box on that line, enter 0
2020 Form 8915E Line 17
Do not enter anything in the other boxes, leave them blank (empty)
The 1/3 of the amount from the 2020 distribution will be entered on the 2021 Form 1040 Line 4b if from an IRA or on Line 5b if from a retirement plan other than an IRA
However, if you entered a repayment amount for tax year 2021 then there will not be a taxable amount entered on either Line 4b or 5b if the repayment was equal to or greater than the 2nd year distribution.
