Should I report my 401K distribution if it's only a small amount?

zulumimi · #1 Feb 10, 2008, 09:54 AM

Hello!

I am 52 yrs. old and have filed some varient of a IRS 1040 form all of my life. My income over recent years has been between $38,000 and $43,000.
In 2007, I received $980.00 in an early distribution on a 401K. I am inclined to report it but am worried that I have never reported interest income (under 100.00 annually) in all of my tax filing years! I've never taken advantage of some deductions, either, to be fair.
Would reporting this amount automatically make the IRS look into my past years taxes?

Thanks for your input!
Donna

The Texas Tax Expert · Feb 10, 2008, 10:39 AM

Quote:

Originally Posted by zulumimi

Hello!

I am 52 yrs. old and have filed some varient of a IRS 1040 form all of my life. My income over recent years has been between $38,000 and $43,000.
In 2007, I received $980.00 in an early distribution on a 401K. I am inclined to report it but am worried that I have never reported interest income (under 100.00 annually) in all of my tax filing years! I've never taken advantage of some deductions, either, to be fair.
Would reporting this amount automatically make the IRS look into my past years taxes?

Thanks for your input!
Donna

You should be reporting all income that you are required by law to report. Even when you don't receive a form documenting it, interest income is still (generally) taxable.



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