Will 2 1099-Rs (pension & 401k cashout) hurt my tax return as single mom?
I need to claim 2 1099-Rs this year - one from my pension and another from cashing out my 401k for emergency expenses. I had taxes taken out of both but im worried about how this will affect my return. I'm a single mom with 2 dependents and usually get a decent refund. Anyone dealt with this before?
12 comments
Write a comment...
Sayid Hassan
Tax pro here. The 401k withdrawal will likely trigger a 10% early withdrawal penalty unless you qualify for an exception. However, having taxes withheld was smart! The pension shouldn't cause issues. With 2 dependents, you might still qualify for credits that could offset some impacts. Make sure to check if your emergency expenses qualify for any penalty exceptions.
0 coins
Arnav Bengali
omg thank u! Do medical bills count as an exception? That was the main reason 😭
0 coins
2M
Sayid Hassan
Yes! If medical expenses exceeded 7.5% of your adjusted gross income, you might avoid the penalty on that portion!
0 coins
2M
Write a comment...
Rachel Tao
Hey instead of guessing, you should try taxr.ai - it analyzes your specific situation and tells you exactly what to expect. Its only $4.99 and totally worth it. I used it last week and it predicted my refund amount perfectly!
0 coins
Derek Olson
for real? how accurate is it with the 401k penalty stuff?
0 coins
2M
Rachel Tao
Super accurate! It looks at everything - dependents, exceptions, credits, penalties. Even tells you if you qualify for any special circumstances. Way better than trying to piece everything together yourself
0 coins
2M
Danielle Mays
Just tried it and WOW 🙌 It caught a medical expense exception I didn't even know about!
0 coins
2M
Write a comment...
Roger Romero
in the same boat mama! had to cash out my 401k last year for emergency surgery. the penalty stung but it wasnt as bad as I thought 🤷♀️
0 coins
Write a comment...
Anna Kerber
Whatever you do DO NOT forget to report both 1099s. My cousin tried to only report one thinking it wouldn't matter and got hit with a huge penalty later 💀
0 coins
Niko Ramsey
fr fr the IRS always finds out 👀
0 coins
2M
Write a comment...
Seraphina Delan
make sure ur using a good tax preparer this year, its to complicated to DIY with the 401k stuff tbh
0 coins
Arnav Bengali
ya thinking the same thing... dont wanna mess this up
0 coins
2M
Write a comment...