I took an early distribution from my 401K due to COVID-19 on October 2020, total was $25,500. I chose to spread the distribution over 3 years. $8,500 per year. This is the last year and when i put the last 8,500 and choosing the corona virus check box, my federal return amount drops more than $2,200. It seems that the software is applying the 10% early penalty plus the 10% federal tax rate. I’ve tried deleting it and re-doing it over again, still no joy. :(. Last year i had no issues at all. I tried to contact turbo tax customer service support but no help. Anybody is having the same issue?
