topic Can i amend my return? in After you file

Can i amend my return?

rrichards12 — Sat, 01 Jun 2019 18:53:32 GMT

i recently was approved for social security disability. The date i became disabled, under their rules, is April 2018. During 2018 i withdrew money from my 401K and therefore paid an extra penalty on my 2018 taxes. Can i file an amended return showing i was disabled in 2018 and get those penalty dollars back?

This is several years ago, but has lots of good info: htt...

SweetieJean — Sat, 01 Jun 2019 18:53:33 GMT

This is several years ago, but has lots of good info:

https://www.taxprotalk.com/forums/viewtopic.php?t=586

The tax code has it's own definition of "disabled" with r...

dmertz — Sat, 01 Jun 2019 18:53:35 GMT

The tax code has it's own definition of "disabled" with respect to the early-distribution penalty exception which is separate from the definition used by the Social Security Administration. To qualify for the penalty exception you must meet the tax-code definition and IRS requirements provided in IRS Pub 590-B:

You are considered disabled if you can furnish proof that you can't do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration.

It's entirely possible that the same documentation that you provided to the SSA would be sufficient to substantiate to the IRS that you are eligible for the disability exception to the early-distribution penalty, but your Social Security disability determination alone is not sufficient.

With proper documentation to support eligibility for the exception to the early-distribution penalty, yes, you can amend your 2018 tax return to claim this exception (Exception number 03) on line 2 of Form 5329.

Thanks dmertz. I don't think it will be worth the hassle....

rrichards12 — Sat, 01 Jun 2019 18:53:49 GMT

Thanks dmertz. I don't think it will be worth the hassle. Have a great day!