I was not working in 2020 and took money from my retirement plan to live on. Do I have to pay taxes on this money?

Yes. However, if the distribution from a qualified retirement plan or IRA is a “coronavirus-related distribution,” then no 10% penalty applies for anyone under age 59½. What’s more, a coronavirus-related distribution may be redeposited in the same or other retirement account within three years, allowing for a recovery of taxes paid on the distribution.