@smbosworth wrote:
Any help would be appreciated. I withdrew $22,723.14 from our 401K. They withheld $2,272.31 for federal tax and $1,817.85 in state tax. I then paid back $15,000 during the year.
When I enter the 1099, Line 5 b calculates to $13,331 when I DON'T check the box to spread over 3 years and calculates tax based on that. Shouldn't 5 b be $7,723 and the tax based on that? I don't know where the $13,331 is coming from.
If I check the box for 3 years, then line 5b is zero and i get a substantial refund.
What am I missing??
Appreciate any insight.
When I do it I get $7,732 on 5b.
Spreading over 3 years means zero tax on line 5b, now since you already returned more than 1/3 and you get the tax withheld back as part of your refund.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
