It would not be a deduction but a tax relief offered to you. Please continue to read:
Congress enacted special tax relief to make it easier for retirement plan participants (including IRA owners) to access their retirement funds to recover from disaster losses incurred while living in certain federally declared disaster areas in 2016 and 2017. This disaster relief may allow affected participants to:
- avoid the 10-percent additional tax on early distributions,
- include qualified disaster distributions in income over three years,
- repay distributions within three years,
- borrow more funds as a plan loan, and
- repay plan loans over a longer period
To enter your 1099-R information, follow these steps below. You will be prompted to the screens to ask you about the qualified disaster distribution related questions.
- Sign in to your TurboTax account and select Pick up where you left off
- At the right upper corner, in the search box, type in "1099r" and Enter
- Select Jump to 1099r
- Follow prompts
I am also attaching IRS and TurboTaxHelp links for your reference:
https://www.irs.gov/retirement-plans/disaster-relief-bill-includes-retirement-plan-distribution-and-...
https://turbotax.intuit.com/tax-tips/tax-relief/tax-credits-for-those-affected-by-natural-disasters/...
[Edited 3/31/2020 | 2:48 PM]
