Did you mean to show 5/1/2023 as the last repayment date?
If so, when applying the “Repayment of qualified disaster distributions under 3 year method in Pub 590 B, I come up with a different result:
Dist 100000, therefore taxable amount is 33,333 for each year without any repayment.
Then 55000 repaid by extended due date for 2020 reduces 2020 reported income to 0 and generates a carry forward amount of 21,667 to 2021.
21,667 plus 15000 repaid by extended due date for 2021 exceeds the 33,333 taxable amount for 2021, reducing 2021 income to 0. 3334 is left to carry forward to 2022.
Taxable income on 2022 return would be 33,333 – 3334 carryforward from 2021-15000 repayment on 5/1/2023 = 15,000 taxable income on 2022 return.
In summary taxable income for 2020, 2021, and 2022 would be 0,0, 15000.
NOTE: Since CARES provisions track the disaster distribution rules almost totally, it is assumed that the repayment and tax reporting will follow what is already posted in recent Pub 590 Bs. But it is still possible for the IRS to make some modifications since CARES leaves the details to the IRS.
- This reply was modified 1 year, 5 months ago by Alan S..