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Forum|Forum|4 years ago
March 28, 2022
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In 2020 I took 401K early withdrawal due to Covid disaster. I took $100,000 out and had $10,000 taxes withheld. When I divided repayment over 3 year it came to $33,333 per year. Where was the $10,000 supposed to be entered in 2020 taxes? I am trying to do my 2021 taxes and want to make sure that I got credit for it. Thank you

Best answer by DaveF1006

You were actually given full credit for the taxes withheld in your 2020 return as these were not designed to be spread over a three-year period. To see if you received your total taxes withheld from your 1099R, check your 2020 1040 and look on line 25b to see if the total is reflected there.

DaveF1006Answer

You were actually given full credit for the taxes withheld in your 2020 return as these were not designed to be spread over a three-year period. To see if you received your total taxes withheld from your 1099R, check your 2020 1040 and look on line 25b to see if the total is reflected there.

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J

joed2025

Dave,

There was an update this morning which appears to fix the issue with one caveat. Warning everyone if your money was pulled from an IRA in 2020, the program does not spread it over three years for 2022. As an example, if you pulled $ 6,000 from your IRA in 2020 for Corona Disaster and spread it over three years, the taxable amount should be $ 2,000 per year. But the 2022 program inserts the full $ 6000. that throws the tax calculation off. I manually corrected it for now. But hopefully, they provide a fix. It passes the error check in either situation, but, again you may be paying more taxes than necessary.