The income thresholds for ssdi receipents were 940 & 980 per month for 2008 and 2009 respectively. Depending on what the 9,000 was used for, you may not have any tax liability but may have to pay penalties. Since your 100%, contact the DAV at your local VA Regional Office. They should be able to help navigate through the mess and may get IRS to waive the early withdrawal fees. The VA Regional Office is 1-800-827-1000. They'll put you in touch with the DAV. Another place to visit is the local vet center. They can be found by going to www.va.gov then clicking on locations. nce in that screen click on your state and a lsit of vet centers will appear in a scroll down of all va entities.

When you withdrew the funds.. did you note the reason as disability? THe penalty will not apply if you did...
They should have asked for a copy of the award letter prior to distribution.. had they had that, they would have coded the distribution as due to disability to the IRS. If they did not, they cannot go back and change it.. the penalty will apply if you are under 55---