A friend already submitted her taxes (TurboTax) and now received notice of a $300.00 penatly for withdrawing money from her 401K sometime during 2006. She attempted to amend her taxes but when she put in the penatly... her tax refund did not go down by the expected $300.00, instead it decreased about $150.00. Any particular reason for this... what is she doing wrong in ammending her tax return?
2007-02-08 08:31:14 · 1 answers · asked by DoorWay 3 in Business & Finance ➔ Taxes ➔ United States
Did she increase her total income to show the amount of the withdraw?, the 10% penalty of 300.00 should be shown on line 9 of the 1040X so it needs to be added in as additional tax not additional withholding
If they normally only hold out the regular federal withholding on the withdraw, not the penalty.
2007-02-08 08:41:36 · answer #1 · answered by Anonymous · 2⤊ 0⤋