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roquiaha
Returning Member

COVID withdrawal

So I withdraw $ 81k in 2019, for COVID hardship. Paid tax on $27k in 2020 and plan to pay taxes on $27k rack in 2021 and 2022 returns. However I mistakenly returned $81k back to IRA in 2021 and within a month withdrawn it back from the IRA. How would it affect my 2021 tax return?

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1 Reply
RobertB4444
Employee Tax Expert

COVID withdrawal

You're going to report the second part of the COVID withdrawal from your IRA on form 8915-F.  That should be available in the TurboTax software on March 17th.

 

How you're going to handle the accidental return and withdrawal of the 81K to your retirement plan will depend on how they plan documents it.  If they send you a 1099-R for the withdrawal you should be able to show it as not an actual withdrawal.  But hopefully they will simply regard it as a removal of a contribution and not send you a form for it for 2021 at all.

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