Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 6, 2025 3:31:24 PM

Can I deduct $50,000 of court ordered federal restitution that was withdrawn from my 401K?

0 1 640
1 Replies
Level 15
Mar 6, 2025 3:35:39 PM

No.  Court ordered restitution for some for some sort of wrongdoing on your part is not deductible.   Enter your 1099R ---it will be taxable income; if you are younger than 59 1/2 you are also subject to the 10% early withdrawal penalty.

 

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.