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desta_mh6
New Member

My total wages and tips is below $6000, but I received $1414 from an early retirement distribution. Do I still have to file taxes, and if so, what is the correct form?

 
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1 Best answer

Accepted Solutions
Rachel_W
Expert Alumni

My total wages and tips is below $6000, but I received $1414 from an early retirement distribution. Do I still have to file taxes, and if so, what is the correct form?

Yes, you will still need to file a Tax Return in order to calculate and pay the 10% Penalty on the Early Retirement Distribution. 

You will receive a Form 1099-R reporting the distribution from your 401(k).  If you had Taxes Withheld, they should cover the penalty and you may even be due a refund of some of that Withholding.

Also, because you had Earned Income, you may also qualify to receive the Earned Income Credit. Check out the TurboTax FAQ below for more details:

https://ttlc.intuit.com/replies/3299933

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2 Replies
Rachel_W
Expert Alumni

My total wages and tips is below $6000, but I received $1414 from an early retirement distribution. Do I still have to file taxes, and if so, what is the correct form?

Yes, you will still need to file a Tax Return in order to calculate and pay the 10% Penalty on the Early Retirement Distribution. 

You will receive a Form 1099-R reporting the distribution from your 401(k).  If you had Taxes Withheld, they should cover the penalty and you may even be due a refund of some of that Withholding.

Also, because you had Earned Income, you may also qualify to receive the Earned Income Credit. Check out the TurboTax FAQ below for more details:

https://ttlc.intuit.com/replies/3299933

Hal_Al
Level 15

My total wages and tips is below $6000, but I received $1414 from an early retirement distribution. Do I still have to file taxes, and if so, what is the correct form?

There is also the question of how the tips were handled. if they were reported on your W-2 (box 7), you do not need to anything except enter your W-2 into TurboTax
Otherwise, you report the tips on form 8919 to calculate FICA (social security & medicare) tax.

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