If I take a coronavirus related retirement distribution in 2020 and report one-third of the distribution each year for 2020, 2021 and 2022, how much of the distribution is in Total Household Resources (THR) each year?
Homestead property tax credit and home heating credit claimants should include in THR, only the amount of the retirement distribution reported on their federal returns in the tax year. For example, if the entire distribution of $15,000 is included in Adjusted Gross Income (AGI) on the 2020 return, then all of the income must be included in THR. If the distribution was reported in AGI in equal installments over three years, then the claimant should report $5,000 in THR in 2020, 2021 and 2022.
Note: All 2020 taxes withheld must be reported on the 2020 MI-1040.