Filling Out form 8915-e over three years

[acs11012]

Hello,

I’ve been trying to fill out my taxes using the new uploaded 8915-e form. I am wanting to divide my distribution over three years. I did not check the box asking if I wanted to pay the distribution in all of its entirety this year. It doesn’t seem to be dividing the amount or the tax withheld by three. Do I edit the cells for the distribution and the taxes withheld by three or is it supposed to divide it over three years if I do not check the “all in one year” box? 

[LinaJ2020]

Please double check the numbers on your tax return.  The total distribution amount should show on line 5a of your Form 1040.  It is only for reporting purposes.  It is not taxable.  The 1/3 portion should show on Schedule 1 as other income.  

"For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution."

For more details, click here:  Covid Relief

[acs11012]

@LinaJ2020  But it looks like all of the taxes withheld from my distribution are being used for 2020 taxes and not only a third.

Is the distribution able to divided against three years but the taxes withheld has to be claimed all in one year?

for example, if I had 100,000 tot distribution and my 401k company already withheld 20,000 in taxes, it looks like the entire 20,000 amount withheld is counting against 2020 taxes even though only 1/3 of the distribution is being accounted for. Is that correct? 

[fanfare]

the entire 20,000 is counted towards your taxes due as amount already paid, which is in your favor. That is correct.

BUT

check your return to see that taxable amount is one third.

I don't see TurboTax Online doing that, as of today.

[macuser_22]

---

@acs11012 wrote:

@LinaJ2020  But it looks like all of the taxes withheld from my distribution are being used for 2020 taxes and not only a third.

---

Yes,  that is correct.   Any tax withholding can only be applied to the tax year in which it was withheld.  The CARES Act allowed the distribution to be spread over 3 years, not any tax withheld.   You get the excess tax withheld as a refund which is the object of the CARES Act - to put more money in your pocked now.