lsteffens
Level 2

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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