I work full time at Wal-Mart and in November 2006 I started receiving early retirement checks from a company I used to work for years ago. Is this retirement income taxable and if so how do I claim it on my federal and or state return(s)?
2007-01-31 11:08:36 · 4 answers · asked by Mike 1 in Business & Finance ➔ Taxes ➔ United States
You will show this income on line 16a and 16b of the 1040 and on the 1040a Line 12a and 12b.
You would be liable for the 10% early withdrawl penalty on these monies, except if you were age 55 or older in the calender yr that you left the employer or you are receiving the distributions under IRC 72(t), that is the substantially equal periodic payment exception.
Publication 575
2007-01-31 12:19:58 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Retirement income is taxable as ordinary income. It's reported on line 16 if you file a 1040, or on line 12 of a 1040A.
For state, that varies by state. I'm in PA, and PA doesn't tax pensions so if you lived here, you would not report it, but some states do.
2007-01-31 21:56:01 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Yes, it's taxable. You'll get a statement from them with all the information that you need to file correctly.
2007-01-31 19:26:52 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
As income.
2007-01-31 19:16:10 · answer #4 · answered by Anonymous · 0⤊ 1⤋