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Level 2
posted Mar 25, 2022 10:54:18 PM

how to files state Indiana when i already paid full cares act withdrawal on 2020 and federal is pay 1/3 ..

files Indiana last year 2021 i paid full amount ($60000) withdrawal of cares act (Indiana has not adopted that provision to elect to spread the distribution over 3 years)..then why turbo tax files still add 1/3 amount ($20000) into State Tax this years ? how to files my state if i already paid full tax last year ,,Thanks

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1 Best answer
Expert Alumni
Mar 29, 2022 9:06:52 AM

Yes, you will have to amend your 2020 Indiana state tax return to spread it out over 3 years, therefore you will get a refund on your 2020 state return and then will report 1/3 of the distribution in 2021 and 2022.

10 Replies
Expert Alumni
Mar 26, 2022 6:51:55 AM

Indiana adopted the provision permitting the election to include CARES Act distributions over a three-year period on March 31, 2021 (IN.GOV). If you had the full amount added to your Indiana 2020 tax return then you will have to amend your 2020 Indiana state tax return to spread it over 3 years. Please see How do I amend a prior-year state return?

Level 2
Mar 27, 2022 12:36:41 AM

is any way can i correct my Indiana tax return this year without amendment ?

Level 15
Mar 29, 2022 8:23:11 AM

No, you won't be able to correct a return that's already been submitted without filing an amended return.

If you're saying that you haven't filed your 2021 Indiana return yet, and you're wondering how to fix your return that hasn't yet been submitted, please clarify in a reply. 

Level 2
Mar 29, 2022 8:37:31 AM

I haven’t file 2021 yet…so I have to Amend 2020 Indiana state to get money over paid back then file 2021 Indiana state pay again 1/3 amount they add to this year ?

Expert Alumni
Mar 29, 2022 9:06:52 AM

Yes, you will have to amend your 2020 Indiana state tax return to spread it out over 3 years, therefore you will get a refund on your 2020 state return and then will report 1/3 of the distribution in 2021 and 2022.

New Member
Apr 7, 2022 1:41:25 PM

I paid the full state tax in 2020 before Indiana allowed the 3 year option.  Now, Turbo Tax assumes I want to spread it out over 3 years.  So, 3 years was not an option to elect, it is the only option?

 

Federal asked if you would like to pay full or spread out over three years.  Indiana only allows the 3 year option.  Is this statement correct?

 

If not, how do I tell Turbo Tax the tax has already been paid.

 

Thank you!

New Member
Apr 7, 2022 1:42:59 PM

Also, is this because Turbo Tax does not support full payment or the state of Indiana requires it spread out over 3 years.

Level 2
Apr 8, 2022 10:21:29 AM

if you already paid full cares act on Indiana state on 2020 , you have to amend refund money back on that year 2020 ...but i just found out Indiana form IT-40 , schedule 1 -line 6-i can negative add back :code 147 ...2/3 money over paid on 2020 so i don't need to file amend ..i doesn't know it work or not but both federal and Indiana state return electronic filling had been accepted.

Expert Alumni
Apr 9, 2022 11:59:14 AM

Yes, if you elected to spread the distribution on your federal return then you will have to select it on the Indiana return as well.

 

@Shannon Hennessy

 

 

Level 1
Apr 11, 2022 11:19:09 AM

I did the same as Nicklee...there is a publication on in.gov to use code 147 for this.