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New Member
posted Oct 17, 2022 4:57:05 PM

Did You repay any 2020 Qualified Disaster Distribution in 2021? What amount should I enter here? I opted to not spread over 3 years.

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4 Replies
Level 15
Oct 17, 2022 5:42:17 PM

Just answer the question.

everyone's situation is different.

@allen-young 

Level 15
Oct 18, 2022 10:53:43 AM

Even if you paid all the taxes on the 2020 return you still could have repaid some in 2021 so just answer the question ... it is either a yes or no.  

Level 15
Oct 18, 2022 7:05:12 PM

 ,

I do believe COVID-19 related distribution is not in the category of 2020 Qualified Disaster Distribution .

They are separate.   See Form 8915-F.

@Critter-3 

@allen-young 

Level 15
Oct 20, 2022 8:14:14 AM


@fanfare wrote:

 ,

I do believe COVID-19 related distribution is not in the category of 2020 Qualified Disaster Distribution .

They are separate.   See Form 8915-F.

@Critter-3 

@allen-young 


Correct.

 

@allen-young 

There are two separate provisions under the law.

 

A qualified disaster distribution applied to federal disasters like hurricanes and wild fires.  If you took a distribution because of a disaster-related hardship, you have 3 years to pay it back into the retirement account  and reverse the income tax you paid.  COVID-19 was specifically excluded from being considered a disaster for this rule, because it was covered by a different special rule.  If you did not take a disaster distribution in 2020, then answer "no" because you had nothing to repay in 2021.

 

Separately, if you took a COVID hardship distribution in 2020, you have three years to pay that back and reverse the taxes.  The program may ask about that separately, although if you repaid a 2020 COVID hardship distribution, you generally have to go back and amend your 2020 return instead, as far as I can remember.  In any case, if you are asked about repaying a COVID disaster distribution, if you didn't make a repayment, you would answer "no" here as well.