phyllisjw

My client took a $100K penalty free distribution due to COVID from his 401K and wants to pay taxes over three years. He also has unemployment compensation. Since the deferral will lower his taxable under $150K does he qualify for the reduction in unemployment and stimulus?

Send the $33K back to the 401K? I don't understand what you mean.

Taxpayer withdrew $100K from his 401K without penalty due to COVID and chooses to spread out for 3 years. He also has $21K in unemployment compensation. Without the deferral his income is over $150K with the deferral of $33K he is under $150K. Does he qualify to use the $10,200 deduction?