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 Feb 8, 2024 1:00:14 AM

Do I need to file for the amount I had withdrawn out of my 401k. It was taxed before I received the money from it.

0 1 362
1 Best answer
Level 15
Feb 8, 2024 5:05:42 AM

Yes, you are required to include the 401(k) distribution on your tax return.  The actual increase in your tax liability resulting from the distribution could be more or less than what was withheld because the tax liability resulting from the distribution is not determined until you prepare your tax return.  The tax withholding is nothing more than a down-payment toward the tax liability calculated on your tax return and will be credited on Form 1040 line 25b.

1 Replies
Level 15
Feb 8, 2024 5:05:42 AM

Yes, you are required to include the 401(k) distribution on your tax return.  The actual increase in your tax liability resulting from the distribution could be more or less than what was withheld because the tax liability resulting from the distribution is not determined until you prepare your tax return.  The tax withholding is nothing more than a down-payment toward the tax liability calculated on your tax return and will be credited on Form 1040 line 25b.