CARES act distribution in 2020. Filing taxes now for 2022. Repaid Distribution Sept 2023

[philliesfan75]

Background:  I took a cares act distribution in 2020 for $50k and spread it out over 3 years so 16,667 per year.

I'm in the Retirement Plans and Social Security > IRA, 401k, Pension Plan Withdrawls (1099-R) section.

I did not get a 1099 R this year (Calendar Year 2023 for 2022 Tax Year) because the distribution was made in 2020.  So I just hit continue.  Is this correct since I elected to take my distribution over 3 years?

• I choose Yes to "Did you take any distributions in a prior year OR repaid a prior year distribution in 2022."
• I chose No to taking a qualified  disaster in 2021
• I chose Yes to (Name) had a 2020 Qualified Disaster and put in the amounts from my 2021 Form 8915F which is 16,667.

I just repaid my distribution 9/2023.  Under "Did (name) repay any 2020 qualified Disaster Distribution in 2022?" , do I put the amount $16,667 even though I just repaid it?  (I'm aware I need to amend my 2020 and 2021 tax returns.). 

Why is it that whether I put in $0 or $16,667, my Federal Tax Refund doesn't change?   Shouldn't my repayment mean my taxes should be lower for 2022?

thanks

[dmertz]

Yes, indicate that you made a repayment in 2022.  From the IRS instructions for lines 14 and 25 of Form 8915-F:

A repayment is made in this year if it is made before you filed your return for this year, and not later than the due date (including extensions).

I this context, "this year" means 2022.

If your taxable income before reporting the repayment is already zero, indicating the repayment won't reduce your taxable income below zero.  Review Form 8915-F and lines 4a and 5b of Form 1040 with and without the repayment.

[philliesfan75]

Thanks for your answer.  

I was messing around and figured out how to reduce my tax for 2022.

I originally took it out of a 401k but because I switched jobs and had to move money out of that 401k to an IRA, I could only repay it this year to an IRA.

When I put the repayment amount into a tradition IRA, it didn't deduct anything.   So I had to put the repayment amount into "Repayment made to any other type of retirement plan" in order to reduce my taxes.

My new question is how do I prove to the IRS I made the recontribution?   

[dmertz]

Right, you must report the repayment relative to the type of account the distribution came from, not the type of account to which the repayment deposit was made.

When the repayment deposit is made to an IRA, you are required to inform the IRA custodian of the nature of the repayment so that they can code it appropriately on the Form 5498 that they will provide to you and to the IRS.  No other proof is necessary unless the IRS questions the repayment, in which case you would provide a transaction statement showing the amount and that the repayment was made no more that 3 years after the date of the distribution.

[philliesfan75]

Thank you for your help.