topic Where do i pay my retirement penalty? I received an esop share plan check this year and a 10% early withdrawl was imposed. in Retirement tax questions

Where do i pay my retirement penalty? I received an esop share plan check this year and a 10% early withdrawl was imposed.

shatbits — Thu, 06 Jun 2019 15:44:31 GMT

You should have gotten a 1099R and when this reported Tur...

MichaelL1 — Thu, 06 Jun 2019 15:44:33 GMT

You should have gotten a 1099R and when this reported TurboTax will compute the tax and penalty and it will part of your return.

You will also be given credit for any taxes paid in when withdrawn. These would be in box 4 of the 1099R.

To enter pension and annuity Payments (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

Understood but Turbo tax did not compute the early retire...

shatbits — Thu, 06 Jun 2019 15:44:35 GMT

Understood but Turbo tax did not compute the early retirement tax in federal or state or am i wrong. My question is upon the state an federal tax already owed is the penalty of early retirement already included or is it on top of what i owe? Also where does the penalty tax go to Federal/State?

The 10% is only a Federal penalty, it is not on the State...

MichaelL1 — Thu, 06 Jun 2019 15:44:36 GMT

The 10% is only a Federal penalty, it is not on the State return. When 1099R is reported it is reported any tax and penalty are added to return and then you get credit for Federal Taxes withheld in box 4 of the 1099R. Edit the 1099R entries paying close attention to questions that follow.