Qualified Disaster Distribution

How Is a Qualified Disaster Distribution Taxed? Generally, a qualified disaster distribution is included in your income in equal amounts over 3 years, beginning with the year in which the distribution was made. However, if you elect, you can include the entire distribution in your income in the year the distribution was made.

Any repayments made before you file your return, by the due date (including extensions), and no later than 3 years and 1 day after the distribution was received, reduce the amount of the distribution included in your income.

Also, qualified disaster distributions aren’t subject to the additional 10% tax (or the 25% additional tax for certain distributions from traditional SIMPLE and Roth SIMPLE IRAs) on early distributions.

If a taxpayer who spread the income from a