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Indiana return how to enter code 147 for other deduction for COVID distribution?

TammyN
Level 1

I have a new to me return.  Prior year (2020), they elected the 3 year allocation of an IRA distribution(Coronavirus rules).  The full amount was taxed on Indiana using code 120 add back on Schedule 1.  I am trying to enter as a Code 147 deduction on Schedule 2 this year.  I am not finding where to enter this other than on the form as an override.  But the return get rejected as it doesn't want the code as an override.

HELP

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2 Comments 2
dkh
Level 15

Please read Indiana Information Bulletin #119 - specifically page 6.    Indiana followed IRS on the 3yr spread for IRA distributions.   In my opinion, the 2020 Indiana return needs amended and there should not be an addback deduction on 2021.

https://www.in.gov/dor/files/ib119.pdf

 

edited to correct as noted above

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qbteachmt
Level 15

To clarify: "they elected the 3 year allocation"

That is the Default. The full reporting in the initial year is the Election. This has always existed for disasters. It isn't new for covid.

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