2255250
I withdrew $75K from my IRA in 2020 and due to Covid-19 implications want to split up the amount over 3 years, but not equally. In TurboTax when I answer NO that I don't want to pay tax on the entire amount for 2020 it automatically splits it up 3 ways, $25K per year. I want to split it up using $42K as 2020 income and the rest equally in 2021 and 2022. How do I do this in TurboTax???
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You don't.
The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. 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.
Dividing your distribution by 3.0 is the only option available.
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