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.
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I do believe COVID-19 related distribution is not in the category of 2020 Qualified Disaster Distribution .
They are separate. See Form 8915-F.
@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.
Correct.
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.