do i need to file?

[Eichinge4688]

hello,

i am wondering if i even need to file.  i had filed for an extension at the beginning of the year because it was too convoluted for me to figure out myself.

technically, i did not make enough for the year to be required to file. per the IRS website, i saw that you dont need to file if you only earned under $12,950 gross for the year. i was well below that. 

however, my mother is under the impression that since i took an early portion of my retiremennt fund, 403B. that it may require to me still file regardless.

so that is where i am tripped up.  

let me know!

[rschule1]

Hi There:

You Mother (sorry for the bad news) is correct -assuming at the time of distribution you were not yet 59 & 1/2 years old. If not, you will need to file an IRS tax return and report an early distribution penalty on your 403B distribution, which turbo tax software will calculate. The $12,950 is an income limitation rule, but it does not include additional taxes like an early withdrawal penalty.

[ClarissaA · Accepted solution]

If you took a distribution from a tax favored retirement account before retirement age and received a 1099-R you will need to file in order to calculate, report and pay any early distribution penalty for that retirement income. 

While your actual taxable income may be zero after your standard deduction, there is an "extra" tax of 10% that is applied to money taken out of a retirement account before you reach age 59 1/2.  

Since you mentioned a 403(b) distribution, you need to file.  If your retirement plan withheld taxes when they sent you the money, you like will not have a balance due.  If there were no taxes withheld at all, you should be prepared to make a payment (or a payment plan) for the IRS. 

I hope this information helps!