I did not work to take care of my father fulltime until his passing- this was 18 months ago. I cashed out my own 401K savings, ended upo getting divorced, and declared bankruptcy. Will I get money back if I file taxes for the years I failed to?
I could be mistaken but I remember reading where any debt that was forgiven [such as with bankruptcy, mortgages, loans, etc] would be regarded as "income" even though is isn't in your pocket.
Here are some rules for who needs to file federal taxes. It is virtually everyone who made any money. States are usually even stricter on filing, so don't forget your state income taxes.
I would agree with cmagnum except that there is mandatory federal withholding of 20% on most 401(k) distributions - basically, any 401(k) distribution paid in a lump sum (or several partial lump sums) to a person younger than 70 1/2 who is no longer an active employee. If you took the distribution and rolled it over to an IRA and later cashed the IRA out, you can avoid the withholding but you still can't avoid the tax, so you would owe taxes plus interest and penalties in that case.
For the years you had taxable income like when you cashed in your 401 K, you will owe back taxes with penalty plus interest. I know this for my mother failed to file and pay her taxes for about 5 years and it was a mess to clean up. I would not go with a big name company because you will pay more for the brand name. Find a good CPA in your area for they can deal with this sort of thing for far less money. Even there do some shopping because some CPA's like to charge way too much for what you are asking for. Also, it does help to have all your information in order for them. Some like that so much that they take your helpfulness into account when figuring up the bill.
You are required to file a return (federal) for any year in which your income exceeded the combination of the standard deduction and the personal exemption for the year. For 2014, that was $10,150 (standard deduction for a single person $6200 plus personal exemption $3950). You'd have to look up the numbers for prior years - I don't know them offhand. If you had less income than that but you paid taxes, you could file just for a refund.
Cashing out your 401(k) would normally result in taxable income. If you had the usual 20% federal withholding taken out, you may be eligible for a refund of some of that money.
It might be a good time - now, in the off season - to talk to a reputable tax professional. H&R block, Jackson-Hewitt, any of the big chains would probably have good answers for the state where you live. Sorry you had no better options than all that, and sorry you have lost your dad and your marriage, both!!
It sounds like your life went into major train wreck mode. Anyway... the simple answer is yes, you should file your taxes for any year that you had some money coming in. If your 401K was large and cashed all at one time, your tax burden for that year might be high. Did they withhold taxes when you cashed it out? I hope so. That will make it easier. If you cashed out your 401K over a few years time, be sure to file for each year.
You don't have to file for years that you had no money coming in. Some people do this for their own records during non-working years. It can be easier than to drop out of sight for a few years, then reappear.
Do you get alimony or any type of support? Did you file jointly with your spouse while you were married. These are all things to consider. The bottom line answer is yes, if you had income you need to file taxes.
Your timeline isn't really to me. Perhaps you could explain?
1. Did you not work until your father died 18 months ago? How long were you unemployed and did you have any income during that time, such as caregiver income for taking care of your father?
2. You must have worked for some time in order to have a 401K. When did you cash it out? I'm assuming you didn't report this since you didn't file taxes?
3. You haven't filed taxes for the calendar years 2014, 2013, 2012 and 2011, is this right? Did you have income during those periods or was it only your 401K cash out? No income as a caregiver?
4. When did you file for bankruptcy?
As to the question of whether you'll have refunds if you file back taxes, no one can really answer that without knowing at least the answer to the questions I asked.
The overriding issue is in my mind not so much whether you'll get anything back but how much you owe, especially on the 401K cashout (depending on how much you put in, how much you cashed out, etc.).
I honestly think you should see a tax advisor; you're flirting with some major tax issues here and need professional guidance. If you did owe taxes from any of the 4 years and didn't pay them, you're not looking at refunds but rather payment of back taxes with penalties and interest.
https://www.irs.gov/publications/p17/ch01.html#en_US_2014_publink1000170388
Cashing out your 401(k) would normally result in taxable income. If you had the usual 20% federal withholding taken out, you may be eligible for a refund of some of that money.
You don't have to file for years that you had no money coming in. Some people do this for their own records during non-working years. It can be easier than to drop out of sight for a few years, then reappear.
Do you get alimony or any type of support? Did you file jointly with your spouse while you were married. These are all things to consider. The bottom line answer is yes, if you had income you need to file taxes.
1. Did you not work until your father died 18 months ago? How long were you unemployed and did you have any income during that time, such as caregiver income for taking care of your father?
2. You must have worked for some time in order to have a 401K. When did you cash it out? I'm assuming you didn't report this since you didn't file taxes?
3. You haven't filed taxes for the calendar years 2014, 2013, 2012 and 2011, is this right? Did you have income during those periods or was it only your 401K cash out? No income as a caregiver?
4. When did you file for bankruptcy?
As to the question of whether you'll have refunds if you file back taxes, no one can really answer that without knowing at least the answer to the questions I asked.
The overriding issue is in my mind not so much whether you'll get anything back but how much you owe, especially on the 401K cashout (depending on how much you put in, how much you cashed out, etc.).
I honestly think you should see a tax advisor; you're flirting with some major tax issues here and need professional guidance. If you did owe taxes from any of the 4 years and didn't pay them, you're not looking at refunds but rather payment of back taxes with penalties and interest.
Was there some reason you didn't file taxes?