My husband took money out of his 401k but didn't use a portion of it till 2017 for deposit on new house, do we put that somewhere?

[jenniferscooper]

My husband took money out of his 401k but didn't use a portion of it till 2017 for deposit on new house, do we put that somewhere?

[DoninGA · Accepted solution]

If the withdrawal was in 2016 then you should have received a Form 1099-R for the withdrawal.  The payment for a personal residence is not an exception for the 10% early withdrawal penalty when withdrawn from a 401(k).  The withdrawal is a taxable event and is to be reported on your tax return.  The taxable amount withdrawn is entered as ordinary income and taxed at your current tax rate.  If the withdrawal was before age 59 1/2 there will be a 10% early withdrawal penalty assessed on the tax return, Form 1040 Line 59.  Any federal taxes withheld and shown in box 4 of the form are entered by the program on Form 1040 Line 64 as a tax payment (just like from a W-2).

To enter 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