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Get your taxes done using TurboTax
@kyanda wrote:
Thank you so much! I found it!
Another question on my 401k withdrawal. I had federal taxes taken out when I took it and didn’t have to pay state because I was in Texas. Now it’s saying I have to pay taxes on the withdrawal? I thought I already did that when I took out the money.I did move to Iowa after the withdrawal so that now shows as my current address. Is it the state f Iowa that is claiming the taxes on that income now? It says I have up to 3 years to pay it back but I chose the option at withdrawal to have taxes taken out already so I’m confused. Thanks so much!
You had taxes withheld from the withdrawal just like you would have taxes withheld from wages reported on a W-2. The taxes withheld are entered on your tax return as a tax payment. If your total tax payments are less than your total tax liability you will have taxes owed on the federal tax return.
If you selected to have the distribution spread out over 3 years then only 1/3 of the distribution is entered on your federal tax return Form 1040 Line 4b or Line 5b as taxable income, depending on whether the withdrawal was from an IRA or a pension plan.
You should be filing a part year Iowa tax return and you indicate your income on the state return for only the dates you were an Iowa resident.