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Level 1
posted May 17, 2021 12:20:05 AM

CARES Act IRA Distribution

I took an early distribution out of my IRA under the CARES Act. Using Turbo Tax my Federal return processed the distribution properly by allowing me to spread at least one-third or up to the full distribution on 2020 taxes or spreading over the next 3 years. However, the state (MN) seems to be taxing the full amount of the distribution. Before I file I was hoping to gain some confirmation that Turbo Tax is processing this correctly- that the state of MN is NOT following the Federal CARES Act provision of spreading the taxable distribution amount over three years.

0 1 141
1 Replies
Level 15
May 17, 2021 9:48:03 AM

That is correct.  MN does an add back on line 4 here:

2020 M1NC, Federal Adjustments (state.mn.us)