Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
lorinana
New Member

I took money from my 401 to pay the down payment on a new home. It looks like income. I paid the taxes at the time I took it out. How do I off set.

It looks like income but it wasn't really.  I paid the taxes on it when I took it out.  It really decreased my return.  Anyway I can it wasn't income?
1 Reply
xmasbaby0
Level 15

I took money from my 401 to pay the down payment on a new home. It looks like income. I paid the taxes at the time I took it out. How do I off set.

Hate to give you this bad news--taking money out of a 401k  for a home purchase is not an exception to the early withdrawal penalty like it would be with regular IRA.  You are subject to the early withdrawal penalty plus ordinary income tax on that money you took out of your 401k even if you used it for buying a house.

**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.**

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v