If you have an early distribution, you may qualify for an exception. If not, the penalty stands. As you go through the interview, you will encounter the screens to indicate if one is applicable.
Your social security is not taxable if it is your only income. If you do have other income, it may be. In addition, there is a filing requirement. If your (taxable) income is over this amount, you are required to file.
2019 Filing Requirement
- Single: $12,200 if under age 65. $13,850 if 65 and older.
- Married filing jointly: $24,400 if both under 65. ...
- Married filing separately — $5 at any age.
- Qualifying widow(er) with a dependent child: $24,400 if under 65. ...
- Head of household: $18,350 if under 65
A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:
- $25,000 - for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year
- $32,000 - for married couples filing jointly
- $0 - for married persons filing separately who lived together at any time during the year
Exceptions to the additional 10% tax apply for early distributions from an IRA that are:
- Made to a beneficiary or estate on account of the IRA owner's death
- Made on account of disability
- Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
- Qualified first-time homebuyer distributions
- Not in excess of your qualified higher education expenses
- Not in excess of certain medical insurance premiums paid while unemployed
- Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
- Due to an IRS levy, or
- A qualified reservist distribution
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