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Michigan Permanently disabled early partial ira distribution taxes deducted should all be refunded

I'm 56 years old single no children  totally and permanently disabled since 2012 lost my home so I have no property credits etc I'm living with a family member my only source of income is social security I have federal and state tax taken out of my social security payments as a precaution and I took out a partial  early distribution from my ira for medical and living expenses and I had federal and state taxes deducted from my distribution  I had federal only taken out of my social security. I've read that if your disabled your social security is not subject to tax and I've read mixed answers about the early distribution I use the turbo tax free file program and in my opinion there should be some type of instructions you can go to if the questions are unclear to you but there does not seem to be one my question is should I receive all of the tax deducted from my social security and the federal tax I had deducted out of my early distribution refunded.   I've gone thru the free file and I'm getting some of the federal and state tax refunded but not all of it is there something I could be doing wrong in the program?  for the distribution code I used 3 which is disabled but I'm still only getting back around 1/3 of what the  tax amounts I had deducted .  I am getting back about the same amount that I did last year when I had the same circumstances I took out a partial distribution and only income is social security and had taxes deducted before I received the payments........another note I'm not able to itemize deductions I fill it all out but the program comes out saying that the 12000 deduction gives me a better refund because my deductions are not high enough.   Thank you for any insight you can provide I cant afford to pay to have my taxes done

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1 Reply
ColeenD3
Expert Alumni

Michigan Permanently disabled early partial ira distribution taxes deducted should all be refunded

You have to copy the 1099-R exactly as it is. "for the distribution code I used 3". You can't choose to put a 3 in Box 7 if it is not on the form. If you had, you would not have seen any distribution penalty.

 

This question, in various forms, has been answered already by numerous people. How much is your income and what form does it take? If it is over the filing requirement you have to pay tax. How much is your social security? How much is your IRA distribution? What other income do you have? What code is actually on the 1099-R?

 

@Lexifrise

 

 

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