Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Feb 3, 2021 8:21:47 AM

How to file taxes if receive only 1099-R for 401k early withdrawal (no W-2 income) in 2020. (unrelated to CARES act)

Hi, I am unable to figure out this and have tried searching for this online, but I am in a unique situation here: 

  • I am a single non-citizen (on F1 OPT) who moved out of the US to Canada at the end of 2019 & therefore was not employed and received no wages (and no W-2) in 2020.
  • The only income I had in 2020 was due to 401(k) early withdrawal since I was moving & the total withdrawal amount is less than the standard deduction for 2020 ($12,400).
  • Now, I received a 1099-R, and federal+state (MA) taxes were withheld when I received the withdrawal amount.

So my doubt is - Am I supposed to file my federal and state tax returns on Form 1040NR as I have done in the past using just 1099-R? I am not sure if I should even expect a refund. 

Any help would be appreciated, thank you!!

0 3 889
3 Replies
Expert Alumni
Feb 3, 2021 8:58:17 AM

Yes, you will have file Form 1040NR since you are a nonresident.. TurboTax does not support Form 1040NR for a non-resident.  You can prepare your return through Sprintax

Returning Member
Feb 3, 2021 9:09:50 AM

Hi @DanaB27  thanks for the prompt reply. 

Yes, I know Turbotax doesn't support 1040NR and I have used Sprintax in the past.
Being a single non-resident alien with no income in 2020 apart from an early 401k withdrawal, I wanted to know that since my income is way below the standard deduction, then do I still need to file taxes and if I would get a refund?

Expert Alumni
Feb 3, 2021 9:37:34 AM

If you are a nonresident alien, you cannot claim the standard deduction.  The only exception to this is if you were a students and business apprentices from India then you may be eligible to claim the standard deduction under Article 21 of the U.S.A.-India Income Tax Treaty (IRS). It seems you were not a student anymore in 2020.

 

"You must file a return if you have U.S. income on which the tax liability was not satisfied by the withholding of tax at the source"(IRS Nonresident Who must file? ). You want to check if enough was withheld and check if you might get a refund. But without knowing all the details this question can't be answered and this is a public forum. You can download 1040NR and look at Instructions for Form 1040-NR if you do not want to use Sprintax.