401k

Forum|Forum|3 years ago
November 16, 2022
1 reply
3 views

Hi,

I am on a fixed income receiving only long term disability of $1,394 taxes are taken out. I closed out the little bit I have had in my 401K through work. Was not much approx. receiving 1,500 They did take out the 20% and not addl 10% since i am 61. Will this effect my taxable income and am i able to receive the earned income credit for 2021 also.

Thank you

Stella

rferreira 1

Level 4

From the information you provided, your only income is from the 401(k) in the amount of $1,500.00. Your standard deduction would reduce that to zero. You should file a tax return to get the amount withheld from your 401(k) withdrawal refunded to you. As far as the Earned Income Tax Credit, you are not eligible as you had no earned income.

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