You'll need to sign in or create an account to connect with an expert.
TurboTax will include the amount as wages on your tax return.
This is because in 2018 you will receive a updated earnings statement or 1099 dated for 2017 and would have to amend your return to process the excess payment. Now you won't have to amend the return and all the money was reported as income that otherwise is currently considered deferred... Note , your state may not allow 401k deferred income so if your state does not, you may have to adjust this out as otherwise you would be recording the income twice if your state does not allow 401k pretax benefits.
The earnings or losses will be reported in the year of the withdrawal which most don't notice till a year lag. This is because we are cash basis taxpayers.
I hope this was helpful?
TurboTax will include the amount as wages on your tax return.
This is because in 2018 you will receive a updated earnings statement or 1099 dated for 2017 and would have to amend your return to process the excess payment. Now you won't have to amend the return and all the money was reported as income that otherwise is currently considered deferred... Note , your state may not allow 401k deferred income so if your state does not, you may have to adjust this out as otherwise you would be recording the income twice if your state does not allow 401k pretax benefits.
The earnings or losses will be reported in the year of the withdrawal which most don't notice till a year lag. This is because we are cash basis taxpayers.
I hope this was helpful?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
RMClark55
Level 2
jim202400
New Member
ualdriver
Level 3
srfrgyrl
New Member
kare2k13
Level 4
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.