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New Member
posted Jun 4, 2019 4:11:51 PM

I think there is an incorrect calculation on a 401k cash out. The program is not recognizing we already paid some of the taxes owed. Is there anyway to override this?

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1 Best answer
Level 15
Jun 4, 2019 4:11:52 PM


You didn't pay the tax, you had tax withheld, just like W-2 withholding that will be applied now to pay the tax.

You are REPORTING the taxable amount and the amount of tax withheld. If there is a difference between the two you will either owe additional tax or it will be applied to your refund.

The actual tax depends on your other income and margional tax bracket. If not enough tax was withheld, you will owe more.

The box 4 (or box 12 state) withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 16 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.


1 Replies
Level 15
Jun 4, 2019 4:11:52 PM


You didn't pay the tax, you had tax withheld, just like W-2 withholding that will be applied now to pay the tax.

You are REPORTING the taxable amount and the amount of tax withheld. If there is a difference between the two you will either owe additional tax or it will be applied to your refund.

The actual tax depends on your other income and margional tax bracket. If not enough tax was withheld, you will owe more.

The box 4 (or box 12 state) withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 16 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.