Yes, you would enter the loss as well. It would be entered as "Other Income". identify it as "Loss on Excess Deferral Distribution."
Other income is reported on line 8 of Schedule 1 of Form 1040 and then the total from line 10 of Schedule 1 is transferred to line 8 of Form 1040 itself.
To enter as Other Income in TurboTax, here are the steps:
- Sign in to your account, select Pick up where you left off
- To the right upper corner, in the search box, type in "other reportable income" and Enter
- Select Jump to other reportable income
- Next screen, Other Wages Received, select No to continue
- Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
- Next screen, Any Other Taxable Income? select Yes to continue
- Enter a description and the amount.
Or you can:
- Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
- Go to the last selection, Miscellaneous Income and click Start
- Go to the last option, Other reportable income and click Start
- When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return.
Click here for additional information on an excess 401(k) deferral.
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