I'm currently homeless, unemployed and taking money out of an IRA to?
If you are under age 59 1/2 when you take money out of an IRA you will have a penalty of 10%. If you are taking out only enough to pay the student loan you will not have any regular income tax but you will still owe the penalty. If the IRA trustee is withholding 10% of the amount of the distribution for IRS you will not have a problem with IRS for not filing taxes, but you should file anyway. However, if the tax is not being withheld you will owe and the IRS will expect you to file and pay the tax, but you may be able to get the IRS to not collect if you do not have any other income.