qbteachmt
Level 15

"Withdrew a lump sum of 130K from TSP account under CARES"

But the CARES limit is $100,000.

"Only coronavirus-related distributions are eligible for the favorable tax treatment provided by the CARES Act. As defined by the Internal Revenue Service (IRS), a coronavirus-related distribution is “a distribution (withdrawal) that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs.” That means $100,000 is the maximum amount across all your retirement plans combined that you can apply these tax advantages to. You must designate your withdrawal(s) as a coronavirus-related distribution when you file your taxes. To do that, you’ll file Form 8915-E."

https://www.tsp.gov/covid-19/withdrawals-and-repayments/

Did you search the web for NY?

https://www.wgcpas.com/new-york-state-addresses-personal-income-tax-conformity-with-cares-act/

 

"Coronavirus-related distributions from an eligible retirement plan will be allowed to be included in adjusted gross income over a three-year period."

 

https://www.tax.ny.gov/pit/cares-act-faq.htm

"New York State follows the federal treatment. The income will be included in New York adjusted gross income in the same year it is included in federal adjusted gross income."

*******************************
"Level Up" is a gaming function, not a real life function.