topic I withdrew my 401k account early ( $12,000-ish) and was under the impression that I would also have to pay a 10% penalty, only owed $299. Can someone clarify this for me? in Retirement tax questions

I withdrew my 401k account early ( $12,000-ish) and was under the impression that I would also have to pay a 10% penalty, only owed $299. Can someone clarify this for me?

bryan-rodgers91 — Thu, 06 Jun 2019 15:33:28 GMT

I thought that I would be taxed a total of 10% come income tax time, making that around $1200 give or take, however ended only owing $299. I'm kind of confused on whether or not I'm still going to owe on this on top of the $299. Did my annual withholding factor in on that 10% penalty as well?

Your withholding from other income sources may have reduc...

PaulaM — Thu, 06 Jun 2019 15:33:29 GMT

Your withholding from other income sources may have reduced the total amount that you owe. Look at line 74 of your 1040 for total tax payments and compare that to line 63 of the 1040 for Total tax.

Total tax line 63, includes taxes on early withdrawals and the taxes computed on your other income sources. Your withholding payments simply covered nearly all of the early withdrawal penalty amounts.

Look for Form 5329 in your tax documents. Form 5329 is the form used to calculate the early withdrawal penalty and flows to line 59 of your 1040.