@MSoldtimer wrote:
Looking through all the comments on this subject, it appears most of the concerns are about spreading the tax liability over three years and the delay in having the 8915-F form available. The concern I have is waiving the 10% penalty for year 2021 like they allowed for 2020. The form on the IRS site clearly states in the instructions that it is not to be used for coronavirus:
"Coronavirus-related distributions. You can only report qualified disaster distributions for disasters listed in item C. Coronavirus-related distributions can’t be made in 2021."
Does anyone know if this might change? It is a huge impact for someone furloughed due to the pandemic to now have to pay the 10% penalty for taking out money they needed to survive.
I am sorry about your job situation. Sadly, the waiver of the 10% was only for 2020. I doubt this will change. In my opinion it should always be the case that there would be a waiver of the 10% for a job loss, but that is not how it works at the moment.
