Will I owe the IRS more taxes if I pulled money out of my 401k?

Only your tax accountant would know for sure.

But a guess on my part YES, a tax return would be needed.

Welcome to Fluther.

Since you didn’t specify, I will have to assume that you are not yet eligible to take distributions from your 401(k) by virtue of being at least 59–½ years old, or meet any other criteria that would enable you to take reduced-tax distributions. (I’m not sure, but I suspect that permanent disability would be a qualifying exemption from having the income taxed as regular income at that point.) I’m also assuming that you didn’t roll over the distribution, or you would have mentioned that. In addition, I’ll assume, absent qualifications to the contrary, that all of your contributions to the 401(k) were pre-tax. (It is possible in some plans to make after-tax contributions as well, and the return of those monies to you in the form of a distribution is generally exempt from additional tax, since you would have been taxed on the income at the source, your paycheck.)

Finally, I’m making another assumption that the tax that was withheld upon your distribution event was some kind of backup withholding that the financial institution is required to do.

You should file the tax return, because if this was your only income for the year (or a large part of it), then you may be eligible to have some of your taxed amount returned in a refund.

I doubt that you will owe the IRS additional tax on the amount of the distribution, but you gave no additional details regarding other income for the year.

Sounds like you have to file a tax return. I doubt you will owe if you took out a big chunk of money and were taxed when it was distributed to you. There might be a good chance you get money back. Did they tax you at 25%?

@Tropical_Willie all ur assumptions were correct. Sorry, I just don’t know about all that stuff that much, that’s why I didn’t add it.

@JLeslie I can’t remember if it was 25%. It was a lot that’s all I remember.

Also, @Tropical_Willie I didn’t have a job or any other income in 2015

@Jiboo420 Schedule an appointment with a CPA / tax accountant. Go in with all your 1099’s and anything that could be used as a deduction.

If all you have as income is salary and your 401k distribution, and maybe some bank account interest, and you don’t have anything else that affects your taxes you can do it yourself. I don’t know your situation. Have you bought or sold a house? Do you pay a high amount of mortgage interest, sales tax, and property tax that causes you to itemize? If not, your taxes should be simple.

You will need to file a tax return and use the 1099 as evidence as to the transaction you initiated when withdrawing the funds from your 401K. Do enlist the services of an accountant so they can verify and certify that your use of that money was inline with the protocols of the tax boundaries of the 401K tax deferred deductions and allowances.

No home or property taxes or anything.

Thanks guys for ur help

Just for future reference if the banks or an employer sends you a form, you have to file since they are reporting to the IRS. Depending on what was withheld, you may have to pay or you may get money back.