You'll need to sign in or create an account to connect with an expert.
Yes, the distribution would add to your taxable income. The exception you take to the 10% early distribution penalty does not make the entire distribution nontaxable, it simply means you don't pay the early distribution penalty.
The distribution amount adds to both your Adjusted Gross Income and your taxable income. Tax is calculated based on your total taxable income. Then, all your tax withheld from ALL sources is added together and subtracted from the calculated tax due.
Because this income is added to your adjusted gross Income, it can change many hings on your return, other than just the tax due on this one amount. Credits that change according to your AGI can change,and so can your overall tax rate.
Yes, the distribution would add to your taxable income. The exception you take to the 10% early distribution penalty does not make the entire distribution nontaxable, it simply means you don't pay the early distribution penalty.
The distribution amount adds to both your Adjusted Gross Income and your taxable income. Tax is calculated based on your total taxable income. Then, all your tax withheld from ALL sources is added together and subtracted from the calculated tax due.
Because this income is added to your adjusted gross Income, it can change many hings on your return, other than just the tax due on this one amount. Credits that change according to your AGI can change,and so can your overall tax rate.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
VAer
Level 4
frankiestylez
Returning Member
vishalg_99
Level 1
Questionasker
Level 4
Lala533
New Member
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.