Tax Question! thrift saving withdrawal reported as earned income? Why?
Asked by: posadas
I withdrew my Thrift Savings Plan last year, and I understand the paying the taxes part of it…BUT…why is it considered “earned income”….(at least that is how the guy at H&R Block did it)…I am on SS Disability, so this so-called “earned income” (my TSP withdrawal) made my SS income be taxed 85% …not to mention that it raised my taxes owed to a Gut-wrenching high amount. Might also make SS take a look and wonder why I “Earned” so much and did not report it to them as “earned” income (?)…is there anything I can do? Did he prepare my taxes right?
How others found here:
- are withdrawals from savings considered income
- is a TSP withdrawal income?
- eic and thrift savings