If, at age 60, you withdraw from your 401K, and the taxes are removed before the money is dispersed, what line should the withdrawal be reported on to avoid a double tax?

[rwmay01]

I had such a withdrawal and reported it on line16b of last year's return.  I was looking over the return recently when I noted, what I feel is, the error.  I can see why most withdrawals would be reported on this line, but as I have already had taxes removed from my payment, placing the figure here would be taxing it a second time.  Yet, I don't know where else to put it in an adjusted return.

[VolvoGirl]

16b is right.  And you report the gross amount before the tax withholding.  You didn't actually pay the tax.  You had taxes withheld like from your paycheck. You still have to enter the whole 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 withholding will show up on 1040 line 64 (2013 line 62) or 1040A line 36.

[Hal_Al]

"I have already had taxes removed" is not a correct statement. What you had withheld was only an estimate of the tax due. No piece of income (e.g. a withdrawal from a 401k) is taxed in isolation from your other income. You report all your income, at tax filing time. You also report all your withholding (& other estimated payments) to determine whether you pay more tax or get a refund.

[SweetieJean]

You will receive a 1099-R for the withdrawal, and enter it into the TT program. It will show the gross amount, taxes withheld, etc (much as a W-2 does).

As indicated above, your actual tax due may be more less.

[fanfare]

Tax withheld is tax paid -- the US Treasury has the money -- and goes on 1040 Line 64. Tax withheld in excess of tax due will be refunded to you unless you choose to apply the amount to next year's tax bill.