early withdrawl penalty IRA - disabled, proof?

[angie52]

I have Fibromyalgia and Anxiety disorder, I have not worked for 2 years because of the pain and anxiety.  I have a claim with Social security that has lasted 2 years.  I have a hearing in May.  I asked my doctor to write up something for me since my fibro is non curable (have has since 2013 gets worse every year.) My doctor said she can state my diagnosis and that I have not worked in 2 years.  She said cannot write that I can never work again or whatever the terminology is used by IRS.  Will what she writes be sufficient and do I send it along with my taxes or do they ask for it later?   I just dont want to submit it and it is not enough and then I already used my refund money.  Or do they do audit or ask for proof before you would get refund?  Just so confused what I should do.  Also can the money I took out be used for anything or does it have to be medical supplies?     

[Opus 17]

You don't send proof to the IRS when you file.  Save your proof of disability with your other important papers in case of audit.

For income taxes, disabled means unable to perform gainful work due to a condition that is permanent.  There is no specific proof specified in the law, although there is a general principle that the burden of proving the right to any deduction or adjustment is on the taxpayer.  While a certification from the SSA would almost certainly be accepted, a strong letter from your doctor should be enough even if the SSA is still working on it.  

[angie52]

But what if my doctor does not do strong letter?  I feel like they don't want to get involved for legal reasons.

[angie52]

I mean she is doing letter but just basically my diagnosis and that I have not worked in 2 years.

[Opus 17]

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@angie52 wrote:

I mean she is doing letter but just basically my diagnosis and that I have not worked in 2 years.

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If audited, you must prove that you are unable to perform gainful work (work for money).  This does not mean that you can't perform your preferred job, it means you can't do any job for money.

How you prove that is up to you.  Typical methods would be by showing a disability determination from your employer, a disability insurance firm that accepts your claim, or the social security administration accepting your claim, or a letter from your doctor explaining your diagnosis.  Remember that if you are audited, the auditor is not a doctor and won't understand your medical records, even if you have them.  They are going to want to see some third party expert confirm what you are saying.