Thanks for the input. Since the IRS didn’t put a dollar amount on the hardship it is definitely up for interpretation. The word “adverse” per Webster’s dictionary states “acting against, opposed to one’s interest, causing harm”. Covid did work against my salary and caused harm to my salary when comparing last year’s salary. Once again no dollar amount is listed so “standing in front of an IRS agent” is a bit dramatic.
Base on the information they have given by the letter, I’ve been harmed financially by Covid 19. Does it matter it’s $15,000 or $150,000. If it’s for paying bills or buying a car, once again doesn’t matter per the letter. Just like the bullet point stating you qualify for the cares act if you couldn’t work because of lack of child care. Once again no dollar amount has to be attained. Plus how would they verify you’re information that you couldn’t find daycare?!? It so vague it makes me wonder how seriously they will look at this. It is my money, I’ll be paying taxes on it. Just not the 10% early withdrawal penalty.
I did talk to a Turbo Tax expert and she agreed without a doubt that I qualified. She said it doesn’t matter that my base salary was intact, Covid interrupted my bonus pay that I normally would of gotten if it wasn’t for Covid. I’m not for sure what direction I’m going to go. Still debating and would recommend everyone to investigate this very carefully before deciding. Thanks for you’re insight.
