How do I know if an early 401k withdrawal was paid last year

[erinmrobertson]

How do I figure out if we paid the 10% tax on an early 401k withdrawal last year? Just wanting to make sure we did everything correctly

[VolvoGirl]

On your 2019 return?  The 10% Early Withdrawal Penalty is on Schedule 2 line 6 which goes to 1040 line 15.  Then you get credit for all the withholding taken out on 1040 line 17.

Or for 2020 it isn't listed separately on your 1099R.    It is just part of the withholding taken out.  

You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The gross amount shows up,on 1040 line 4a/4c and the taxable amount on 4b/4d.  Then you get credit for all the withholding.

[DoninGA]

The 10% early withdrawal penalty is assessed on your federal tax return and entered as a tax liability.  Any taxes withheld from the distribution will be entered in box 4 of the Form 1099-R that you will receive in January 2021 for a distribution in 2020.  You report the Form 1099-R received on your federal tax return, Form 1040.

The taxes withheld will be entered on your federal tax return as a tax payment.

To enter, edit or delete a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

[Opus 17]

Your taxes, including any penalties, are only calculated on your tax return.  Any amount that was withheld is only an estimate, and you will get credit for the withholding when you enter the 1099 – R form. Then, if the actual tax is more than was withheld, you will owe an additional payment. If the actual tax due is less than the amount withheld, you will get a refund.