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401k withdraw and disability

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pooh1965

Guest
What is the name of your state? AZ ... approved ss disability, however, before approval, had to withdraw 401k from past employer due to disability/finances. will i be taxed the additional penalty for withdraw of 401k early, due to disability reasons? what and/or how would i need to file this tax season? since i had not worked in 2002, would or could i claim this 401k withdraw as "earned income" since it was earned income at the time it was placed into my 401k? i took out a portion of the 401k, not the entire amount. single parent , and would like to claim the child tax credit, but to do so, i understand i would have to show "earned income" in order to receive a tax refund this year... any suggestions greatly appreciated...thanks
 


abezon

Senior Member
If they report it on a 1099-R, they will either designate it as a disability draw or you file a Form 5329 and tell the IRS it was a distribution made due to disability. You don't need earned income to claim the child tax credit. You need it to claim the child care credit or EIC.
 

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