The IRS does allow for the taxes owed on the IRA distribution to be spread over a 3 year period with the first being the year the distribution was received.
You can enter your 1099-R in TurboTax and account for the spread of taxes in this manner.
- Sign into TurboTax
- Click on Take me to my return
- Go to Search at top right and enter 1099-R
- Click on Jump to 1099-R
- Click on yes for Did you have any of these types of income in 2017? and then Continue
- Click on I'll type it in myself
- Click on Form 1099-R and Continue
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Add your 1099-R information as it appears on the form and click Continue
- Continue through interview and enter Yes for Was this a Qualified Disaster Distribution? and Continue
- Continue with interview until you get to, Do your want to pay tax on the entire 2017...click Continue
- Finish up interview
Once done with the 1099-R entry you can go out to see the the taxes is accounted for properly by:
- Click on Tax Tools in left column
- Click on Tools under Tax Tools
- Click on View Tax Summary in Tools Center
- Click on Preview my 1040 and scroll down to line 15b, you should see 1/3 of your distribution as taxable
