1099-R

13 replies
78 views

If I took a distribution from my IRA in 2019 due to Covid19. I can spread that distribution over three years?

What about the tax withheld which is 10% of the distribution. Should I distribute that tax over three years?

TurboTax Live Premier Online

PattiF

Alumni - Intuit

Yes, you are able to spread the distribution over three years. The 10% additional tax on early distributions does not apply to any coronavirus-related distribution. You do not have to pay the additional 10% tax.

For more information, see this link: CARES Act and Retirement

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KCWhelehanAuthor

Level 2

I'm still confused. In box 4 on 1099-R, I had 10% of the distribution withheld. What number do I report on my 2020 taxes?

SteamTrain

Level 15

The form required to do that will not be ready until 24 Feb...or later...but right now they think 24 Feb.

The withheld taxes will ALL be applied to 2020, even if you spread the distribution itself over 3 years. So you could get a larger refund this year, and have extra to pay in the next couple years.

https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

KCWhelehanAuthor

Level 2

Thanks. I have another question.

After I answered the stimulus questions my Fed Tax doubled.

I received both checks in 2020. Why is that taxable? I thought they were non-taxable.

VolvoGirl

Level 15

You are not paying tax on them. But Turbo Tax started out by giving you credit for the whole amount so you refund was too high. Then when you entered what you already got the starting refund was reduced or the tax due increased. You don't get it twice.