I took money from nationwide due to fire in home. did not file special forms. do i even mention it on this year's tax form? took two distributions to pay tor estore home?

[Luminalll]

House fire in 2022. Husband in chemo/radiation and passed six months later. We took two distributions from our Nationwide Act to restore house. Was I supposed to file a special form to report reason for additional "income" which is how Social Security/IRS terms it. I paid taxes on disbursements at time of withdrawal, and on 2023 taxes, now Social Security has reduced my monthly income by nearly $400 because they consider it "new income," even though I paid taxes on it twice already.

[DavidD66]

If you lived in an area that was designated a federal disaster area, and suffered a loss as a result of that loss, there was special treatment of distributions from retirement plans and IRAs.  They were exempt from the 10% penalty for early withdrawal, and they could be reported on your tax return over three years, instead of all in the year of distribution.   But you still had to report it as income.  If you want to take advantage of this, you can file an amended return for 2022 with a Form 8915 - Qualified Disaster Retirement Plan Distributions and Repayments.  Generally, an amended return (Form 1040-X) must be filed for a credit or refund within 3 years after the date the original return was filed, or within 2 years after the date the tax was paid, whichever is later.

I recommend you contact the Social Security Administration.  Benefits can be reduced if you are below the full retirement age and have earned income above a certain level; however, I have not heard of them reducing benefits due taking distributions from a retirement account.