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sikesme
New Member

I took out of my 401k because my roommate lost their job due to COVID-19 and they couldn't pay rent. So can I qualify for putting this down as a covid related disaster?

 
3 Replies
macuser_22
Level 15

I took out of my 401k because my roommate lost their job due to COVID-19 and they couldn't pay rent. So can I qualify for putting this down as a covid related disaster?

That does not sound like YOU fit any of the qualifications.   Why would you qualify if someone else could not pay their rent?

 

Q3. Am I a qualified individual for purposes of section 2202 of the CARES Act?

A3. You arlified individual if –

  • You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;
  • Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;
  • You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19;
  • You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or
  • You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

Under section 2202 of the CARES Act, the Treasury Department and the IRS may issue guidance that expands the list of factors taken into account to determine whether an individual is a qualified individual as a result of experiencing adverse financial consequences. The Treasury Department and the IRS have received and are reviewing comments from the public requesting that the list of factors be expanded.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
sikesme
New Member

I took out of my 401k because my roommate lost their job due to COVID-19 and they couldn't pay rent. So can I qualify for putting this down as a covid related disaster?

@macuser_22 because their loss of employment was the reason that I took the money out of my 401k or else we weren't going to make rent for a couple months. I had to pay their share of rent. 

macuser_22
Level 15

I took out of my 401k because my roommate lost their job due to COVID-19 and they couldn't pay rent. So can I qualify for putting this down as a covid related disaster?

I can only point you to the IRS rules.  You must determine if your situation fits the rules.  Possibly the 3rd rule but that might be stretching it since it was not you that was laid off or a spouse or dependent - I see no provisions for roommates.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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