I'm in Cleveland OH the CCA division for Local Taxes. I cash out an old 401k and received a 1099-R. CCA said I don't need to pay local taxes on that? I paid state/feds.

[blogozar]

I already paid state/fed taxes (and penalty) so this was good news to hear - just want to make sure they are giving me sound advice.  The CCA told me 1099-R are not taxable by local municipalities so I don't need to report it to them.

[MichaelL1 · Accepted solution]

Most municipalities tax earned income, which a retirement distribution is not considered. 

Per the web site:  http://ccatax.ci.cleveland.oh.us/  they tax employee wages and business net profit. 

Just to be safe, I would print this and also document your phone call and put it in your tax folder for your records. 

[blogozar]

Thank you!