Here's my situation. I took $40K in early distribution in 2020 from my 401k.
My work is furloughing me 10% for two years. Assume my normal salary is 80K per year, after furlough is 72K, and a loss of $16K over two years.
Can I claim/exempt $16k from taxes for my 2020 tax returns? This will increase my refund.
I hope this makes sense.
Thanks.
