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Level 2
January 29, 2021
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If a client takes a Covid19 early distribution from her 401k

  • January 29, 2021
  • 1 reply
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Best answer by PhoebeRoberts

It's all claimed on the 2020 return, but you can always elect to apply some or all of an overpayment to the next year.

1 reply

Just-Lisa-Now-
Intuit Community Champion
January 29, 2021

You'll use Form 8915E to get the penalty waived and spread the taxability over 3 years if desired, but the form isn't ready or available yet, last time I looked.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
WHODATAuthor
Level 2
January 29, 2021

Thank you for responding. I am specifically inquiring about the Federal Income Tax that was withheld from her distribution and entered in box 4 of the 1099-R. Are we allowed to split it ratably over 3 years as well? 

PhoebeRoberts
Intuit Community Champion
January 29, 2021

It's all claimed on the 2020 return, but you can always elect to apply some or all of an overpayment to the next year.