COMPLEXEYEDEA
Level 2
02-18-2021
04:21 PM
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Hey everyone, I have question regarding paying tax due on early distribution of retirement. Person is eligible to withdrawal funds under CARES act and waive penalty of additional 10%. My question becomes the person can pay tax due over 3 years, how should I report this exactly on pro series. Ex: if amount is 21,000 do I divide this by 3 and just report 7k each year. If that's the case, which I'm assuming it is, how does federal tax withheld work? if they had 2100 fed tax withheld is that divided by 3 and applied each year also or will this be entirely added to 2020 tax paid? Same for state distribution and tax withheld?
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