lsteffens
Level 2
05-07-2021
05:58 PM
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I have a taxpayer that took a $180,000 Covid Distribution. He has repaid $90,000. In my mind, his taxable income from the distribution for 2020 should be $83,333. $80,000 didn't qualify as a Covid Distribution since the limit was $100,000. Of the $100,000 that qualified, he paid back $90,000. The remaining $10,000 should be spread over three years, with $3,333 being taxable each year. The software is only showing $80,000 as being taxable. I even tried entering it as if two 1099-R's had been issued, one for $100,000 and one for $80,000. I showed $90,000 of the $100,000 repaid, but I'm getting the same result of only $80,000 being taxable. What am I missing here?
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