topic Will I be able to spread tax hit on Covid retirement distribution over 3 yrs? Not seeing screen that gives me option to do so. I have deleted and re-entered the 1099 R. in Retirement tax questions

Will I be able to spread tax hit on Covid retirement distribution over 3 yrs? Not seeing screen that gives me option to do so. I have deleted and re-entered the 1099 R.

msmh1 — Tue, 09 Mar 2021 23:10:26 GMT

It provides some questions about it being a qualified Covid distribution, but indicates that all tax is due now. Unsure if the issue is with tax software or what?

Re: Will I be able to spread tax hit on Covid retirement distribution over 3 yrs? Not seeing scre...

MinhT1 — Tue, 09 Mar 2021 23:29:36 GMT

One of the relief measures for Covid-19 is the option to spread the taxation of your retirement distribution (up to $100,000) over three years.

Please read this IRS document for more information.

To take advantage of this option, please follow these steps:

Enter your form 1099-R normally.
After entering your form 1099-R, click Continue until you reach the screen Do any of these situations apply to you?.
Check the box which says I took out this money because of a qualified disaster (includes COVID-19).

Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue.

Follow the interview until you arrive at the screen Was this a withdrawal due to COVID-19 or a Qualified Disaster Distribution?

Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue
Follow the interview until you arrive at the screen Does [name] want to pay all the tax this year?
Click Continue and the taxation of your distribution will be spread over three years.

Re: Will I be able to spread tax hit on Covid retirement distribution over 3 yrs? Not seeing scre...

msmh1 — Tue, 09 Mar 2021 23:33:21 GMT

When I say "yes this was withdrawn due to Covid 19", it never takes me to a screen that asks "do you want to pay all the tax this year".

Re: Will I be able to spread tax hit on Covid retirement distribution over 3 yrs? Not seeing scre...

PattiF — Tue, 09 Mar 2021 23:46:29 GMT

There is a known interview error that some people are experiencing if using TurboTax Desktop.

Here is a link to more information about this issue.