fesemagu
Level 3

I am preparing a taxpayer return who took $85,000 from his retirement account. How do I defer the tax 

payment for the next three years?

0 Cheers
dkh
Level 15

Form 8915-E

dd4vols
Level 10
Level 10

on the 1099-R, scroll down to the QUALIFIED DISASTER DISTRIBUTION SMART WORKSHEET, and click on the 2020 coronavirus box and the one below it, entire amount. Then go to the 5329-T, scroll down to the Distributions Not Subject to Additional Tax smart worksheet, and on line 11, enter the amount.  Before leaving that page, make sure that Line 2 has code 12 in it, and the amount. Then go to the 8915-E,  and at the bottom of Part 1, make sure the 3-year question is marked the way you want. 

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.
Just-Lisa-Now-
Level 15
Level 15

You cant spread the withholding out over the 3 years, only the income. 

(In case when you refer to "tax payment" you really mean withholding)


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪