Can I deduct $50,000 of court ordered federal restitution that was withdrawn from my 401K?

browningwaters · ‎March 06, 2025

xmasbaby0

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.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Expert does your taxes

Do it yourself

Resources

Support

Can I deduct $50,000 of court ordered federal restitution that was withdrawn from my 401K?