 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: Special Rules for Retirement Withdrawals and Medical Expenses\n-------------------------------------------------------------\nCOVID-19 required many taxpayers to take unusual actions to help preserve their financial health. Here's how two of them affect your taxes:\n**Retirement withdrawal**: Did you withdraw money from your 401(k) or IRA to cover expenses this year? The IRS allowed taxpayers who were affected by COVID-19 to take up to $100,000 from a 401(k), 403(b) or IRA account between January 1, 2020, and December 30, 2020, without paying a 10% additional tax on early distributions. You may report the distribution over three years. And if you repay the distribution within three years, you can file amended tax returns to recoup the taxes you paid.\n**Medical expenses**: Did you pay more than 7.5% of your adjusted gross income for medical expenses in 2020? You may deduct that amount from your taxes. If you have a qualifying high-deductible health plan, you can also self-fund your health savings account before the tax deadline and use those funds to pay any outstanding medical bills—or any medical expenses you incur going forward. END