I received a 1099-R after I filed my taxes. Do I need to amend my tax form? My husband cashed out $5,578.07 from retirement and 20% was withheld. Do I need to amend?

[myrnaip3]

Can I get fined if I don't amend or once tax is withheld is there is no need to declare?

[Opus 17 · Accepted solution]

You must report all your income.  The 20% withholding is a mandatory requirement but it is probably not the actual tax you owe; your actual tax is determined by all your combined income, deductions and credits.  Your actual tax owed on this income could be as little as 0% and as high as 42%, depending on your other income and his age.  When you report the 1099-R you get credit for the withheld amount, and then either get a refund or owe more, depending on your overall tax situation.

Since it is after April 15, you will owe 0.5% interest and 0.5% penalty per month on any unpaid or late-paid taxes.  If you don't file an amended return to report the income and pay your tax, then eventually the IRS will send you a notice of tax due (6-10 months from now) at which point the penalties and interest will be that much higher.  (On the other hand, if you would be due an additional refund, the IRS will not pay it unless you claim it in writing on an amended return.)

How to Amend https://ttlc.intuit.com/replies/3288565