What would be the yearly tax over 3 years if taking $10,000 out of retirement early under cares act?

[MinhT1]

Under the CARES Act, you can withdraw up to $100,000 from your retirement account without having to pay the early withdrawal penalty of 10% if you are under 59 1/2. 

You can also spread the taxation of the withdrawal over 3 years. In your example, you would submit one-third of your withdrawal of $10,000 to taxation over each of the years 2020, 2021 and 2022.

The amount of tax depends on your marginal tax rate. For example if your tax rate is 12%, you will pay of $400 for each of the 3 years for the withdrawal.

[J_34]

So in this example, only a third ( $3,333.00) would be applied to your gross income the first, and following three years?  Or is the whole $10K showed as income or added to your AGI and the taxes for that amount are somehow split up and spread over the three years?

Thanks

[macuser_22]

A third is applied each year. Assuming you meet the the requirements for a COVID-19 related distribution.   This will be done on a new 8915-E form for 2020.

[dmertz]

If the election is made to spread the CRD over 3 years, one-third of the income will be included in AGI each of the three years, 2020, 20201 and 2022.