Enter the difference on line 9. If youre preparing your tax returns, you may be wondering whether COVID-19 qualifies as a natural disaster for tax purposes. Step 3. Qualified disaster distributions can be made through June 26, 2023, for that disaster. Enter the amount, if any, from last year's Form 8915-F, line 13, except as follows. If you are unsure if you qualify for disaster tax relief, the IRS has a checklist. But the last day of the qualified disaster distribution period for qualified 2023 and later disasters, some qualified 2022 disasters, and perhaps even a few qualified 2021 disasters will have to be separately calculated. You also made qualified disaster distributions in 2021 and 2022 for this disaster. On line 1d, you enter -0- and, on line 1e, you enter $15,000. Example 1A-1 for column (a). $1,800 Social Security checks: Exact mailing dates in May 2023. The cost of current life insurance protection. If you are required to file 2021 Form 8606, complete that form before you complete Part IV. In the latter case, allocate the amount on line 6 of that prior year's Form 8915-F first to the disasters not listed in the table at the top of Part I of this year's Form 8915-F, and allocate any remaining amount among the Disasters on line 1 of this Worksheet 1B using any reasonable method. If you only entered one disaster in the table at the top of Part I of this year's Form 8915-F and that was the only disaster you listed in item C of the prior year's Form 8915-F, enter the amount from line 6 of the prior year's Form 8915-F. For each Disaster listed in the table at the top of Part I of this year's Form 8915-F that was not listed in item C on a Form 8915-F for a prior year, enter -0- in column (X). However, you may report those repayments on next year's return or carry the repayments back to this on an earlier year as applicable. Qualified disaster distributions must meet the following criteria. Include the state, territory, or tribal government and the FEMA DR number from FEMA.gov/disaster/declarations. Complete line 14 and/or 25, as applicable, if you are only making repayments this year. A repayment is made in this year if it is made before you filed your return for this year, and not later than the due date (including extensions). The Additional Tax and Qualified Distributions. If you arent repaying those distributions, but you received qualified distributions for the Alaska (DR-4585-AK) disaster on January 1, 2021, complete Part IV. The average time and expenses required to complete and file this form will vary depending on individual circumstances. If you listed two or more disasters in the table at the top of Part I of this year's Form 8915-F and you filed a Form 8915-F for a prior year on which you listed in item C some or all of those disasters, enter in column (X) the amounts from line 5 in column (X) of the prior year's Worksheet 1B. It is unclear to me whether you qualify for child related credits and whether you will need to amend a tax return to claim these credits. Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty. You must complete lines 27 and 28 and all other applicable lines of Part IV for your qualified distribution(s). If you arent repaying qualified 2020 disaster distributions other than coronavirus-related distributions, STOP. You will need to file a Form 1040-X for 2020 to claim the repayment. There are different types of relief for those who live in a federally declared disaster area, but the most helpful is generally the casualty loss deduction. As a result of the Secure 2.0 Act of 2022, enacted December 29, 2022, the period for repaying a qualified distribution for a disaster that begins after 2020 does not have a set ending date, but must be calculated. You apply the distributions up to the $22,000 limit against each available disaster. This page is updated regularly by HUDs Office of Housing Counseling (OHC) with the following disaster emergency information from the Federal Emergency Management Agency (FEMA): Individual Assistance for FEMA disaster declarations published in the past year Other FEMA disaster declarations published in the past month For qualified 2021 and later disasters, the qualified disaster area is the state, territory, or tribal government in which a qualified disaster, described next, occurred. Our legal right to ask for the information requested on this form is sections 6001, 6011, 6012(a), and 6109 and their regulations. The distribution was made on April 30. Why isnt Labor Day held in May in the United States? You received a distribution from a traditional IRA on December 14, 2020, to construct a home in the Mississippi Severe Winter Storms (DR-4598-MS) disaster area which you did not construct because of that disaster. Because a qualified distribution can be received up to 180 days before the disaster began, you may have a qualified distribution received in the year before the disaster began. You complete Worksheet 2. On line 1e, you enter $34,000. Qualified disaster distributions can be made through June 26, 2023, for that disaster. See Form 8915-F, line 1; also see, If you list more that one disaster in the table at the top of Part I and all of your distributions for this year occurred within the qualified disaster distribution period (see, On line 7, enter the excess of the sum of lines 2 through 4 in column (a) over the amount on line 6, except if you also are completing Part IV, or are claiming qualified disaster distributions on Part I of more than one Form 8915 for this year. Because the $40,000 is being used on 2021 Form 8915-F (2020 disasters), it should not be counted on line 7 of his 2021 Form 8915-D in determining the taxable amount of his distributions on that form. If the qualified distribution (or any portion thereof) is not repaid on or before the last day of the qualified distribution repayment period for the disaster, it may be taxable and may be subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. It is all excess repayment, as you have no income from the distribution for that year. You cannot repay the following types of distributions. You report $22,000 from the distribution as a qualified 2021 disaster distribution on 2022 Form 8915-F (2021 disasters). In the Year(s) box, select the year in which your disaster began (and the 2 years after that to the extent available). Alex was eligible for qualified distributions for the Havasupai Tribe Flooding Event (DR-4681) disaster (beginning date October 1, 2022) (declaration date December 30, 2022). You have 3 years from the day after the date you received the distribution to make a repayment. How Do I Distinguish My Form 8915-F and Its Disasters From Other Forms 8915-F? See, The qualified distribution repayment period for each disaster still begins on the day the disaster began. See Pub. If you are claiming qualified disaster distributions on Part I of more than one Form 8915-F for this year and you are completing Part IV on this year's Form 8915-F for the earliest disasters. Effective March 13, 2020, the COVID-19 pandemic is a qualifying natural disaster. If (1) through (3) apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster distribution, regardless of whether the distribution was made on account of a qualified disaster. The qualified 2023 disaster distributions for qualified 2023 disasters reported on 2023 Form 8915-F (2023 disasters). Qualified distributions for the purchase or construction of a main home in a qualified disaster area that were not repaid to an eligible retirement plan within the time frame specified in, Electronic Federal Tax Payment System (EFTPS). May 1, 2021 Related C Corporation Income Taxation Individual Income If completing both Part I and Part IV or filing more than one Form 8915. On line 1a of your 2023 Form 8915-F (2021 disasters), you enter $22,000 for DR-4625-NY. If zero or less, enter -0-, Enter the amount from line 3a that you have already carried back to a prior year, Enter the total amount of any repayments you made, with respect to this year's Form 8915-F, before filing this year's tax return, Enter the total of lines 3c and 4 here and on line 14 of this year's Form 8915-F, Enter the amount from column (c) of Worksheet 4: Supplemental Information, Enter the amount from column (d) of Worksheet 4: Supplemental Information, Enter the total of lines 1 and 2 here and on line 23 of this years Form 8915-F, 2020 Form 8915-E, line 17 (if you checked the box on that line, enter -0-), 2021 Form 8915-F (2020 disasters), line 22 (if you checked the box on that line, enter -0-), Enter on line 25 of this years Form 8915-F your total repaymentsthe sum of your excess repayments carried to this year and your repayments made for this year. But the IRS has quashed rumor of this by pointing out that in the covid-19 outbreak: Basically, what this means is that the payments do not include qualified wages that are paid by an employer, even those that are paid when an employee is not providing services. Usually, this applies to events such as tornadoes and wildfires. You had an economic loss as the result of Remnants of Tropical Storm Fred (DR-4625-NY) (beginning August 18, 2021). "; and, 2022 Form 8915-F (2022 disasters), you write "$15,000 excess repayment from 2024 Form 8915-F (2022 disasters). For more information from the IRS, click here:Covid Relief. See Qualified disaster distribution requirements, earlier. If you are amending a Form 1040-NR, see the Instructions for Form 1040-X for which portions of Form 1040-X you will need to complete. Worksheet 3, line 4: Don't include these amounts. For example, you would leave lines 1a through 1d blank when you have checked the same year in item A and item B. You cant use 2023 Form 8915-F (2020 disasters). You had no other distributions in 2021. The FEMA numbers for these major disasters include the letters "DR" in capital letters. Determining the disaster's FEMA number and other information. The disaster area is the state, territory, or tribal government in which the disaster occurs. If you said you had a casualty disaster and then did not add any property loss information, there is nothing in there. nswer Covid related questions under 1099-R, see steps below. If you received qualified distributions for the Alaska (4585-DR-AK) disaster on January 1, 2021, complete Part IV. Generally, a qualified disaster distribution is included in your income in equal amounts over 3 years. In column (b), lines 2 through 5, of your 2022 Form 8915-F (2022 disasters), you enter the amounts from lines 2 through 5 of your filled-in Worksheet 1B, column (b). Most distributions from qualified retirement plans (including IRAs) made to you before you reach age 59 are subject to an additional tax on early distributions and are reported on Form 5329. You may reduce the amount of a qualified distribution included in income for a qualified disaster by the amount of a repayment made during the qualified distribution repayment period. What does it mean when the IRS accepts your taxes? New Line 1a explains the criteria set forth in Form 8915-F, line 1a, including If all of the distributions for this year occurred within the qualified disaster distribution period for each of the disasters listed in the table at the top of Part I. If you are using the desktop option, we are working to resolve this issue. The repayments will reduce the amount of their qualified 2021 disaster distributions made for 2023 and included in income on their 2023 return and any excess may be carried back on an amended 2021 or 2022 Form 8915-F to reduce income on their 2021 or 2022 return. Arnell suffered economic losses as a result of the Puerto Rico Earthquakes (DR-4473-PR) disaster in 2019 and the Puerto Rico Hurricane Isaias (DR-4560-PR) disaster in 2020. **, **Disclaimer: This post is for discussion purposes only and is NOT tax advice. You can choose to use Worksheet 1B if your qualified disasters began in 2021 or later years. You filed your 2023 tax return on April 10, 2024. For more information, see 2021 Form 8606 and its instructions. He received no other distributions in 2019, 2020, or 2021. Sorry, but I think youre wrong. To learn more on claiming an exemption to the 10% additional tax, please review our article on the 10% Early Withdrawal Penalty Exception . See Eligible retirement plan and Qualified distribution repayment period, earlier. will not be issued. The IRS attempts to ease the financial burden on taxpayers residing in these regions by providing disaster tax relief. You must complete the required lines of Part IV if you received a qualified distribution for the Alaska (4585-DR-AK) disaster on January 1, 2021, even if you made no repayments in 2021. In 2022, you made a repayment of $4,500. Do not use a Form 8915-F to report, in Part I, qualified 2020 disaster distributions made in 2020 or, in Part IV, qualified distributions received in 2020 for qualified 2020 disasters. A coronavirus-related distribution can't be made after 2020. Around the Nation News Release Archive 2020, Around the Nation News Release Archive 2019, Around the Nation News Release Archive 2018, Page Last Reviewed or Updated: 24-Apr-2023, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), IRS announces tax relief for victims of severe storms, straight-line winds and tornadoes in Oklahoma, IRS: Indiana storm victims qualify for tax relief; April 18 deadline, other dates extended to July 31, IRS announces tax relief for victims of severe storms, straight-line winds and tornadoes in Indiana, IRS announces tax relief for victims of severe storms, straight-line winds and tornadoes in Tennessee, IRS: Tennessee storm victims qualify for tax relief; April 18 deadline, other dates extended to July 31, IRS: Arkansas storm victims qualify for tax relief; April 18 deadline, other dates extended to July 31, IRS announces tax relief for victims of severe storms and tornadoes in Arkansas, IRS: Mississippi storm victims qualify for tax relief; April 18 deadline, other dates extended to July 31, IRS announces tax relief for victims of severe storms, straight-line winds and tornadoes in Mississippi, IRS announces tax relief for victims of severe winter storm and snowstorm in New York, IRS: New York storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15, IRS provides tax relief for victims of severe winter storms, flooding, landslides and mudslides in California, IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia, IRS announces tax relief for victims of severe winter storms, flooding, landslides, and mudslides in California, IRS announces tax relief for victims of January 12 severe storms, straight-line winds, and tornadoes in Alabama, IRS announces tax relief for victims of severe storms, straight-line winds, and tornadoes in Georgia, IRS: Georgia, Alabama storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15, IRS: California storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15, IRS announces tax relief for victims of severe winter storms, flooding, and mudslides in California, IRS announces tax relief for victims of severe winter storm in New York, IRS announces tax relief for victims of Hurricane Nicole, IRS announces tax relief for severe winter storm and snowstorm in New York, IRS announces tax relief for Illinois severe storm and flooding, IRS: Deadline to file 2019 and 2020 tax returns to get COVID penalty relief postponed in declared disaster areas, IRS expanding dyed diesel penalty relief as a result of Hurricane Ian, IRS: Dont miss this important Oct. 17 tax extension deadline, IRS announces tax relief for victims of Hurricane Ian in South Carolina, IRS announces tax relief for victims of Hurricane Ian in North Carolina, IRS: Hurricane Ian victims in the Carolinas qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15, IRS granting dyed diesel penalty relief as a result of Hurricane Ian, IRS announces tax relief for victims of Hurricane Ian in Florida, IRS: Hurricane Ian victims in Florida qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15, IRS continues relief to drought-stricken farmers and ranchers in 44 states, other regions, IRS: Alaska storm and flood victims qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15, IRS announces tax relief for Alaska severe storm, flooding, and landslides, IRS: Hurricane Fiona victims in Puerto Rico qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15, IRS announces tax relief for Puerto Rico victims of Hurricane Fiona, IRS announces tax relief for Arizona severe storms, IRS announces tax relief for Mississippi water crisis victims, September is National Preparedness Month; IRS urges everyone to update and secure their records to prepare now for natural disasters, IRS announces tax relief for Missouri severe storms and flooding victims, IRS: Missouri storm, flooding victims now eligible for tax relief; Oct. 17 deadline, other dates extended to Nov. 15, IRS announces tax relief for island of St. Croix, U.S. VI water shortage, IRS: Kentucky storm, flooding victims now eligible for tax relief; October 17 deadline, other dates extended to November 15, IRS announces tax relief for Kentucky severe storms, flooding, landslide and mudslide victims, IRS announces tax relief for Oklahoma severe storms, tornadoes and flooding victims, IRS announces tax relief for Montana severe storm and flooding victims, IRS announces tax relief for New Mexico wildfires and straight-line winds, Ahead of hurricane season, IRS offers tips on ways to prepare for natural disasters, IRS announces tax relief for Puerto Rico severe storms, flooding and landslides, IRS announces tax relief for Tennessee severe storms, straight-line winds and tornadoes, IRS announces tax relief for Washington severe storms, straight-line winds, flooding, landslides and mudslides, IRS announces tax relief for Colorado wildfires and straight-line winds, For Colorado wildfire victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16, IRS announces tax relief for Arkansas victims of severe storms and tornadoes, IRS announces tax relief for Alabama victims of severe storms and flooding, Hurricane Ida tax relief extended to February 15 for part or all of six qualifying states, IRS announces tax relief for Tennessee victims of severe storms, straight-line winds and tornadoes, IRS announces tax relief for Illinois victims of severe storms, straight-line winds, and tornadoes, For Illinois and Tennessee tornado victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16, IRS announces tax relief for Kentucky victims of severe storms, straight-line winds, flooding and tornadoes, For Kentucky tornado victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16, IRS: All of Mississippi now qualifies for expanded Hurricane Ida relief; Sept. 15, Oct. 15 deadlines, other dates extended to Jan. 3, More California wildfire relief from IRS: Sept. 15, Oct. 15 deadlines, other dates further extended to Jan. 3 for certain areas, IRS announces tax relief for Connecticut victims of the remnants of Hurricane Ida, More Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dates extended to Jan. 3 for parts of Connecticut, Additional Hurricane Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dates further extended to Jan. 3 for parts of Mississippi; Nov. 1 deadline still applies to the rest of the state, IRS announces tax relief for victims of Hurricane Ida in Mississippi, IRS: Drought-stricken farmers and ranchers have more time to replace livestock, IRS extends dyed diesel fuel penalty relief in Louisiana due to Hurricanes Ida and Nicholas, IRS announces tax relief for Pennsylvania victims of Hurricane Ida, IRS: Tax relief now available to Ida victims in Pennsylvania; Oct. 15 deadline, other dates extended to Jan. 3, IRS announces tax relief for North Carolina victims of remnants of Tropical Storm Fred, IRS announces tax relief for Mississippi victims of Hurricane Ida, IRS: Hurricane Ida victims in Mississippi now eligible for tax relief; October 15 deadline, other dates extended to November 1, IRS announces tax relief for New Jersey victims of remnants of Hurricane Ida, IRS announces tax relief for New York victims of remnants of Hurricane Ida, IRS: Tax relief now available to Ida victims in New York and New Jersey; Oct. 15 deadline, other dates extended to Jan. 3, Understanding what happens after a disaster that leads to taxpayer relief, IRS grants dyed diesel fuel penalty relief in Louisiana due to Hurricane Ida, IRS announces tax relief for victims of Hurricane Ida in Louisiana, IRS: Tax relief now available to victims of Hurricane Ida; Oct. 15 deadline, other dates extended to Jan. 3, September is National Preparedness Month; IRS urges taxpayers to prepare for natural disasters, IRS announces tax relief for victims of severe storms and flooding in Tennessee, IRS announces tax relief for victims of wildfires in California, IRS announces tax relief for victims of severe storms, flooding, and tornadoes in Michigan, IRS announces tax relief for victims of severe storms and flooding in Louisiana, IRS announces tax relief for victims of severe storms and flooding in West Virginia, IRS extends May 17, other tax deadlines for victims of Tennessee storms; provides special guidelines for disaster area individuals needing further extensions, IRS announces tax relief for victims of severe storms, straight-line winds, tornadoes, and flooding in Tennessee, IRS announces tax relief for victims of severe storms, straight-line winds, and tornadoes in Alabama, IRS announces tax relief for Kentucky victims of severe storms, flooding, landslides and mudslides, IRS announces tax relief for Louisiana severe winter storm victims, IRS announces tax relief for Oklahoma severe winter storm victims, IRS extends April 15 and other upcoming deadlines, provides other tax relief for victims of Texas winter storms, IRS announces tax relief for Texas severe winter storm victims, IRS announces waiver of dyed fuel penalty in Texas, IRS announces tax relief for Hurricane Zeta victims in Louisiana, IRS announces tax relief for Hurricane Zeta victims in Mississippi, Alaska Severe Storm, Flooding, and Landslides, Disaster Assistance and Emergency Relief for Individuals and Businesses, Reconstructing Records After a Natural Disaster or Casualty Loss, latest Federal Emergency Management Agency disaster declarations, Treasury Inspector General for Tax Administration, IRS is providing a variety of tax relief for those affected by Hurricane Ian. Why isnt it celebrated in the US? Examples 1 through 3, later, provide guidance. Pursuant to the President's Memorandum on Maximizing Assistance to Respond to COVID-19, dated August 17, 2021, ( 86 FR 46759 ), and under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. The IRS announced that people who are eligible for the unemployment tax deduction and have already filed their 2020 taxes do not need to file an amended return. See Main home , later. Check the box that describes the tax year of the return to which you will be attaching your Form 8915-F. You can only check one box in item A. You had listed one disaster, the Remnants of Tropical Storm Fred, as the disaster in the table at the top of Part I of your 2022 form. If you are required to complete line 1d, complete line 1d as follows. Temporary Crisis and Transition Framework for State Aid measures to support the economy You may be able to designate a qualified distribution for a disaster as a qualified disaster distribution if all of the following apply. By checking the box, you elect to include the entire amount in income in the year of distribution. are also called qualified disaster recovery distributions. If you have already filed your 2020 return on which you reported the distribution, you should file an amended 2020 return to report the repayment. " Use the full name of the disaster. Qualified distributions for only one 2020 disaster can be made in 2021, the Alaska Severe Storm, Flooding, Landslides, and Mudslides (4585-DR-AK). The boxes you check in items A and B will help us determine the exact year of the form you are filing, and the year of the qualified disasters, qualified disaster distributions, and qualified distributions you are reporting. So in regards to this year, 2022, and it's still here, we were all affected by it last year, 2021, by purchasing masks, gloves, getting vaccinated, going to the Dr's, taking care of children that couldn't go to school, paying extra to make sure the internet was on, etc. Qualified distributions aren't subject to the additional 10% tax (or the 25% additional tax for certain distributions from SIMPLE IRAs) on early distributions and aren't required to be reported on Form 5329. For 2024, none of the qualified 2021 disaster distribution is included in income. You filed your 2023 tax return on April 10, 2024. Distributions from retirement plans (other than IRAs), Distributions from traditional, SEP, and SIMPLE IRAs, Qualified 2020 disaster distributions were made to you in 2021. To qualify for child related credits, a dependent must meet the requirements of a qualifying child. The last day of the qualified disaster distribution period for most qualified 2021 disasters and many qualified 2022 disasters is June 26, 2023. Disaster 1: Louisiana Severe Storms, Tornadoes, and Flooding (DR-4606-LA) (which began May 17, 2021). You suffered an economic loss as the result of Remnants of Tropical Storm Fred (DR-4625-NY) (beginning August 18, 2021) and Severe Winter Storm and Snowstorm (DR-4694-NY) (beginning December 23, 2022). For qualified 2021 and later disasters, the qualified disaster area is the state, territory, or tribal government in which a, A qualified disaster is a disaster that the President has declared as a major disaster. If there is no amount in box 2a of Form 1099-R and the first box in box 2b is checked, the issuer of Form 1099-R may not have had all the facts needed to figure the taxable amount. You received a qualified 2020 disaster distribution from a Roth IRA. On line 1b, you enter $10,000. You apply $22,000 of the April 30 distribution to Disaster 2. Do not include on this year's Form 8915-F any repayments you made later than the due date (including extensions) for filing this year's return. No, you cannot. Attach your completed worksheet(s) to the back of your Form 8915-F. If you and your spouse are both filing Forms 8915-F, the $22,000 limits on qualified 2021 and later disaster distributions and the elections on lines 11 and 22 to include all qualified disaster distributions in income (and not spread them over 3 years) are determined separately for each spouse. Also see Pub. On line 7, you will only report $8,000 ($18,000 minus $10,000). For qualified 2021 disasters, the first day of the disaster can be no earlier than January 26, 2021. Can I list Covid-19 as a qualified natural disaster on my tax returns? File Form 8915- F for the year you checked in item A at the top of page 1 of the form if any of the following apply to you for that year for the disasters listed in items C and D. A qualified disaster distribution was made to you from an eligible retirement plan. If you have suggestions for making this form simpler, we would be happy to hear from you. If you use Worksheet 1B, you will leave lines 1a through 1e of this year's Form 8915-F blank, but you will fill in the amounts for lines 2 through 4 in column (a) on that form.
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