Level 15
04-05-2021
02:10 PM
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So they took a Covid distribution? You mark the Covid boxes on the 1099R worksheet. That will take away the penalty and spread the taxability out over 3 years.
Its not really a "tax deduction" for this though, do you understand what's really happening with this? Be sure you explain to the client that they'll have additional income the next 2 years following so you may have to do some tax planning for this.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪