Just-Lisa-Now-
Level 15
Level 15

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♥¸¸.•*¨*•♫♪

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