Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption

Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption.

posted

Did your tax increase that much immediately before and after you entered the form or it that the amount of tax you owe? You are subject to both tax and a penalty. Did you enter the exemption in the program? Compare your 2018 and 2019 returns to see any discrepancy.