If my only income was a lump-sum early withdrawal of my 401(k) plan and SSDI, do I have to file taxes?
Maybe. If your taxable income is high enough, you’ll have to file.
You will be responsible for the taxes on your 401k early withdrawal. Also, depending on the size of your 401(k) distribution, some of your Social Security Disability Income (SSDI) might be taxable.
If your income isn’t high enough to file, you must still file Form 5329 to pay the 10% early distribution tax on your 401(k) withdrawal. This penalty will apply unless you meet a Form 5329 exception. You might qualify for an exception if you took the distribution because you were totally and permanently disabled.
Most Forms 1099-G are received for unemployment compensation or from state or local income tax refunds. Learn more from the tax experts at H&R Block.
Wondering how to use your tax refund? You can save your tax refund or pay down debt to improve your financial situation. Learn more at H&R Block.
All or a portion of your tax refund was taken to pay non-tax debt. Learn more about IRS letter 3179C from the tax experts at H&R Block.
The IRS made a change to the Making Work Pay and/or Government Retiree Credit on your tax return. Learn more about IRS notice CP12M from H&R Block.