Triple tax

I have put money into a 401 account through my bank so the money was already taxed. Needing money, I withdrew most of it to which the bank held a percentage to cover the additional tax I would be assessed. How do I file taxes next year so that I will not be taxed a third time on the same money?

126

Expert Alumni

Jul 27, 2022 12:02:52 PM

Hello,

If the bank already withheld taxes from the money you withdrew, that withheld amount will show on Form 1099R that you will receive next year for filing your taxes for 2022. Make sure you correctly enter your Form 1099R including the taxes withheld when filing your tax return to avoid paying taxes again.

Please let me know if you need any clarification on the above or have any additional questions.

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Triple tax