Repayment of Covid related retirement funds

[tax9060]

We withdrew $100,000 repaid $70,000 before filing taxes.  The 8915 form spreads the $100,000 over 3 years before it subtracts the repayment amount of $70,000.  This makes $33,333 taxable this year and then it subtracts the $70,000 which gives a $0 amount taxable for this year.  I should be paying taxes on $10,000 for 2020, 2021 and 2022.  How do I fix this?  I tried overwriting the taxable amount, it won't let me.  I do not want to have to pay taxes for the full $30,000 this year, I want it spread over 3 years.

[DanaB27]

Please be aware TurboTax is following the instructions for Form 8915-E. The distribution is split into 3 years on line 9 or 17 when elected and then the repayment is deducted on line 10 or 18.   "If you elected to spread the income over 3 years and you repaid more than the amount on line 9/ line 17, the excess will be carried forward to your 2021 tax return"   Please see Form 8915-E  and Instructions for form 8915-E  for more details.

[dmertz]

---

@tax9060 wrote:

I should be paying taxes on $10,000 for 2020, 2021 and 2022.

---

No.  You pay taxes on $0 on your 2020 and 2021 tax returns and on $30,000 on your 2022 tax return.  If you repay the remaining $30,000 by the due date of your 2022 tax return but no later than 3 years from the date of the distribution, you won't pay taxes on the $30,000 either.