I owe $36,000 in income tax for a year during which I earned NO income

Firstly, I want to thank everyone who took the time to reply and I'm sorry if I couldn't respond to each of your posts but that doesn't mean they weren't appreciated.

I want to end this thread by restating my intent which was not to whine about having to pay my taxes or being angry over having to pay a penalty on early withdrawal of 401(k) funds because I made that choice and chose to suffer those consequences. My point was the inequities in our tax system and the severe limitations on hardship withdrawals, but as of now, it is what it is.

As I said, my accountant's initial calculations were $36,000. There was no embellishment or BS about the circumstances as some implied but that's their problem if they want to be so cynical. As for those who offered ridiculous and useless comments, I would say please dont waste anyone else's time with your hyperbole; if you have problems with a thread or topic and have nothing positive to add, just move on. Obviously, a disability implies some type of serious medical issue so comments like "stop whining" or "just get a job" or "go live elsewhere and get a life" are juvenile and merely serve to make you yourself look foolish.

As for the majority of you who contributed something positive to the thread, whether it was words of encouragement, sympathy/empathy or practical/technical advice, you have my deep appreciation. I've shared many of your comments and suggestions with my accountant and we'll see what he comes back with. The situation is intricate and nothing is ever as black and white as it appears, but hopefully he made mistakes which can be corrected (I realize that sounds bizarre but it's the best I can hope for at this point). If not, I'll look into some of the other avenues many recommended and at the end of the day, whatever taxes are due will be paid by the extension date.

Thanks again for all of the great feedback and suggestions. I'll post when a final resolution is reached.

Timidgal

The problem to me is your employer. You have so many people in this country screaming for deregulation that it seems you have an employer who can do just about whatever they want. Last year GE paid no taxes whatsoever. How is that possible? And people still blame the government and taxes? The rich pretty much own the government. Vote socialist. Make the rich and corporate power pay their fair share. It's as simple as that.

reply to post by timidgal

If you "earned" a quarter of a million dollars last year, I have no sympathy for you or your family. That is where people felt mislead in this post. It came into your hands and you spent it, thus you earned it. It is called income. You must have made alot of money to have had such a big IRA. I tried to get rich like you, but failed. To survive I took out my IRA. Why do I get taxed the same as you?

Originally posted by biggmoneyme
id call and ask them to bring me to jail now lol. a free place to live, free food, lots of company, lots of time to meditate. prison seems like guaranteed happiness. freedom is of the mind

haaaaaahhhh, go lock yourself in a small ass closet all day and see how free you'll feel.

the thread title can't be true. is some of this the penalty of the early withdrawl on the 401 (k) ?

Originally posted by earthdude
reply to post by timidgal

 

If you "earned" a quarter of a million dollars last year, I have no sympathy for you or your family. That is where people felt mislead in this post. It came into your hands and you spent it, thus you earned it. It is called income. You must have made alot of money to have had such a big IRA. I tried to get rich like you, but failed. To survive I took out my IRA. Why do I get taxed the same as you?

Firstly, who said I made a quarter of a million dollars last year? Where on earth did you get that idea??? I was very clear in what I received in disability benefits and early retirement withdrawals. It's insulting to tell someone who had to undergo surgery and two rounds of chemo, all the while struggling to keep her kids in college, pay her rent, bills and help others in need that I pi##ed the money away. Damn right I earned that money, but by paying very dear dues over the course of the 20+ years I spent working 12-16 hour days for a cheap employer who had the lamest of benefits and a governmental body who has such a myopic view of "hardship". I'm sorry you had to use your own retirement fund but I have no idea of the reasons and that really has nothing to do with the impetus of my thread which, for the third time, is about the inequities of the classes and the insurance industry's wire clad clutch of those funds during true periods of hardship (which can't be whittled down to four or five descriptions). You and I are arguing the same exact point and you don't even realize it.