Why are we paying so much more in taxes this year?

I know we took out some $ from our 401K and we paid the 1st 10% and looking at having to pay another 10% because of our tax braket! But even when I deal with all the numbers we are still paying almost 6k over to our taxes this year?! Our 401K gets paid right back out of our checks at the highest investment amout our company allows. Yet I cant find a place to some how add that in there either. And if I pull out the 401k loan amount it shows us that we should have gotten over 8k more then we are getting? I am lost! Can anyone help?
    You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket)  and then the withholding is subtracted from the total tax to figure your refund or tax due.  The withholding will show up on 1040 line 62 or 1040A line 36.   The 10% penalty is on 1040 line 58.

    But if you are paying back the amount from your checks it sounds like you took a loan.  You should not get a 1099R for a loan.  A loan isn't reported or taxable.  Or maybe the 401k deductions from your checks is just your current contributions.
    • It seems like both?! Only because we are repayng the amount back out of our paychecks, they stoped investments untill its paid back. And we did pay the 10% early ditrabution. Does this sound right? I even dubble checked our pay stubs
    • I am also getting taxed more than I should. I had federal taxes withheld from my 1099-R which was 20% of my taxable amount. I entered all the information into TurboTax and it is causing me to be taxed an additional 20%. Why is this happening? What can I do to enter this correctly so I receive an accurate return? This is suppose to only be 10%. Is this putting me into a higher tax bracket?
    • I have the same issue. I took a hardship loan. I am paying it back each pay period. I have a 1099r for the amount. It is has increased my AGI and I am being taxed on it. How do I correct this?
    Was this a 401(k) loan or a distribution?  A loan as not taxable unless you default.
      If you took a loan you should not get a 1099R for it.  Loans are not reported.  You should check with them and make sure it was really a loan and not a distribution.

      Yes a distribution might put you into a higher tax bracket and you may lose some credits you had before.
        Contribute an answer

        People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

        1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
        2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
        3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
        4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
        5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.