Tax question regarding Disability Settlement and IRA withdrawl

[Tuesday Afternoon]

within the same year (2011)

Person receives settlement last Feb....... = 11K
Person withdrew from IRA.....................= 7K
Person rec. mthly disability total for yr.....=18K

total income for year = 36K

This person is single head of household with no children. Person has brain damage and is not cooperative.

Does this person need to file a tax return for 2011?

Keep advising this person to talk with a tax person. This has been a conversation ender.

Will this person have to pay taxes and penalties for early withdrawl from that IRA?

Will this person have to pay taxes on any disability earnings?

Thanks for any help just to ease my mind I hope this person does not have to file this year. Very combative about all this.

on edit: After reading this thread- http://www.democraticunderground.com/112167

I have come to the conclusion that this person may be able to claim another person as a dependent... this other person does NOT live in the same household, if that makes a difference... ??

[Angry Dragon]

1. If officially dis abled usually no penalties

person needs to talk to tax person

[Tuesday Afternoon]

2. just to clarify:

are you saying that this person can withdraw (early) from their IRA without paying TAXES and PENALITIES??

This person is 56 y/o.

Thanks.

[Angry Dragon]

3. Taxable but no penalty

[Tuesday Afternoon]

4. to understand ... this person

will or willnot have to file a return?

does this person owe taxes on 36K or does this person only owe takes on the 7K withdraw from the IRA account?

Thanks.

[Angry Dragon]

5. I believe this person will have to file a return

Whether they will owe taxes remains to be seen

It has been many years since I prepared returns

[Tuesday Afternoon]

6. ok. thank you.

peace.