Hi! Was my IRS 10% penalty part of my tax return? I had an early 401k withdrawal and was expecting to pay in a lot, but still ended up getting a refund. Thanks!

[jarrodwhaley]

Turbotax shows a pretty large estimated balance due for next tax season.  I've never seen that before.  That's why I'm concerned this estimated amount for next season has something to do with that 10% penalty.  But, I'd rather make sure the penalty is paid now.  I can't figure out if I paid the penalty or not.  I did report the early withdrawals and submitted the 1099R's on my taxes.  

[MaryK4 · Accepted solution]

The amount TurboTax shows for estimated taxes for 2023 is based on your 2022 tax liability.  If you entered the 1099-R information and did not enter a penalty exception, TurboTax will have calculated the correct tax due.  It is possible that you had adequate withholding (the 401k is required to withhold 20% so if you only had the penalty, there would be a refund.)  Follow the link below to see how to preview your tax return.  Look for Line 17 of your 1040- this is where the penalty would be.

How do I preview my TurboTax Online return before filing?