Early withdrawal on my 401 K distribution

What is the name of your state? Georgia

I used to work for a company and managed to participate in their 401K plan. I left the company in 1999 to go back to school. I had to withdraw my 401K plan in 2001 due to financial stress ( I didn't work that year). When they sent me the check, the check indicated that federal tax has been applied. I realized that there's penalty applied for early withdrawal (I'm 33 yrs old). The gross amount was $13,000 minus fed.tax $2200. I failed to report this on my 2002 tax return, but plan to do it this year. What form should I use, and how do I calculate the taxes due on it? My financial situation is still pretty bad. I can't afford hiring someone to do my taxes. Please help....

If you received the money in 2001, you need to amend your 2001 taxes. You can't just add it to your 2002 taxes because you forgot it last year. You add the $13,000 to your income & add the $2200 withheld to your payments. The penalty show up as another tax.

I wish you had consulted us before taking the money out. If you had rolled it over into an IRA, you could have withdrawn $10,000 penalty-free to pay for school expenses. By withdrawing directly from the 401k, you pay penalty on the whole $13,000.

You amend 2001 taxes by filing a 1040X. This form is horrid, but if you ask nicely maybe the person in your nearest IRS office will help you fill it out. You might also try the local volunteers at the public library or whereever they set up shop.

Amending your 2001 federal return may necessitate amending your state return.

So what you're saying is I would only have to pay taxes on the $3000??? I wish I knew about this website long time ago...
If I put the $13,000 as my other income, how do the IRS penalize my for early withdrawal ? Also, I didn't file taxes in 2001 since I didn't work that year.

One more question, if you don't mind. I work as a waitress and an independent contractor in 2002. My combined income from both jobs, including tips, is about $5000. Am I qualified for EIC? Can you suggest me any website that might be useful for tax questions? The only one I 've tried was H&R Block's site. Thank you for answering me. So far, I found this website very helpful.

You put the $13000 on line 15 or 16 of the 1040, and put the 10% penalty in the other taxes section. You might be eligible for education credits depending on what kind of courses you took & whether they were related to your job.

You're eligible for EIC if your income is below $11,060 and you are 25-64 years old. (assuming no kids)

Since you never filed for 2001, you can just file a 1040 now based on the 1099R the pension fund sent you. You can get last year's tax forms from the IRS web site or the IRS office closest to you.

My problem is that I'm a student and a part time waitress. The cash from my 401K was used to support myself . I don't have any credit card and since I'm also an International student, I'm not elligible for any student loans. I understand that it is my responsibility to pay taxes, but I can't afford to make the whole payment. Does the IRS offer any installment plan with low monthly payment and interest?
Also, in regards to the EIC, one of the rules to be elligible for the credit is that a non resident alien has to be married to a citizen. I have student visa with (INS) work permit. My Social Security card is stamped with "Employment with INS Authorization". Does this mean that I would be elligible to get EIC? If I apply, would this raise a flag to the IRS to do some kind of audit on me?

Thank you for your help, Abezon

"Valid for employment with INS authorization" is sufficient for EIC. However, time spent in the US on a student visa does not count towards meeting the 183 day residency requirement. You have to trade the student visa for a different one. (H1B, usually)