topic I haven't worked all year 2019. I liquidated my IRA retirement account for income. How does that effect my tax filing status? What kind of breaks do I get, if any? in Retirement tax questions

I haven't worked all year 2019. I liquidated my IRA retirement account for income. How does that effect my tax filing status? What kind of breaks do I get, if any?

monassar — Mon, 22 Jun 2020 21:29:19 GMT

No income form work in 2019;
Cashed out retirement account for income;
Any tax breaks?

Re: I haven't worked all year 2019. I liquidated my IRA retirement account for income. How does t...

AnnetteB6 — Tue, 23 Jun 2020 02:44:44 GMT

There are no specific tax breaks available for not having income from work and only receiving a distribution from your IRA. The nature of your income is just different on your tax return.

When you enter your Form 1099-R that reports the distribution from your IRA, the information reported on that form and the answers to the follow-up questions will determine how much of the distribution will be taxable. Then, the taxable amount is treated like any other type of income with regard to calculating the income tax.

@monassar

Re: I haven't worked all year 2019. I liquidated my IRA retirement account for income. How does t...

fanfare — Tue, 23 Jun 2020 03:18:34 GMT

you don't get tax breaks.

you get tax penalties for cashing out your IRA before age 59 1/2.