From what I can tell when I entered the 1099-R, checking the "2020 Coronavirus-related Distribution" box AND entering the 1099-R taxable figure on line B "Entire Distribution is qualified or amount this qualified", ProSeries then cuts the taxable amount to 1/3 and carries it to the 1040.

However, this 1099-R had federal tax withheld, so if I split the distribution over the three years, the federal tax paid is NOT spread out over three years.  Its all recognized for 2020.  That could create issues for the client in years two and three.  Do we have to recognize 100% of the tax withheld for 2020?  Or can that be spread over three years as well?