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I received a hardship withdrawal from my 401k for education expenses and had federal and state taxes and penalties withheld.
I paid a 10% tax at the time of distribution to both federal and state, why did the turbo tax increase my federal taxes due when I included it.
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I received a hardship withdrawal from my 401k for education expenses and had federal and state taxes and penalties withheld.
The tax withheld from your 401k withdrawal was only an estimate of tax owed. If it was an early withdrawal you are subject to a 10% penalty; the money you took out is also subject to ordinary income tax when combined with your other income.
**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.**
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