Self-employed individual in the tourist industry who is under 59 1/2 took out early distribution of SEP in December 2020 because of economic hardship due to COVID. The distribution code was 1 but I was able to abate the penalty.
Gross and taxable distribution is $62,000. I know the taxpayer can report 1/3 of it each year as taxable on the tax return. I looked on the tax software site and instructions and IRS website but can't find an answer. Does anyone know where/how to report the reduction of taxable income?
Gross and taxable distribution is $62,000. I know the taxpayer can report 1/3 of it each year as taxable on the tax return. I looked on the tax software site and instructions and IRS website but can't find an answer. Does anyone know where/how to report the reduction of taxable income?
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