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You do realize that income up to $171,050 is still taxed as 22%, only any amount over that is taxes at 24%
A7. In general, yes, you may repay all or part of the amount of a coronavirus-related distribution to an eligible retirement plan, provided that you complete the repayment within three years after the date that the distribution was received. If you repay a coronavirus-related distribution, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer so that you do not owe federal income tax on the distribution.
If, for example, you receive a coronavirus-related distribution in 2020, you choose to include the distribution amount in income over a 3-year period (2020, 2021, and 2022), and you choose to repay the full amount to an eligible retirement plan in 2022, you may file amended federal income tax returns for 2020 and 2021 to claim a refund of the tax attributable to the amount of the distribution that you included in income for those years, and you will not be required to include any amount in income in 2022. See sections 4.D, 4.E, and 4.F of Notice 2005-92 for additional examples.
Remember that the highest bracket only applies to the top dollars, not all of the dollars. You would have to reduce your taxable income and the only way to do that at this point is probably to return a part of the CARES withdrawal.
The extra tax you are suffering in the 24% bracket is $339.
Is it worth worrying about ?
You have until the due date of your 2020 tax return, including extensions, to roll over some or all of your Coronavirus-Related Distribution and have that amount excluded from income on your 2020 tax return. See Form 8915-E (presently available in draft form): https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
You didn't say whether or not the $188k of taxable income is the result of including the entire $100k in 2020 income or in equal parts over three years. If $188k is the result of including the entire taxable amount of the distribution in 2020, choosing to include the distribution in equal parts in three years will bring your 2020 taxable income below $171,050 if the distribution is mostly or entirely taxable.
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