Question

Do I claim money I took out on TSP loan?

Forum|Forum|5 years ago
February 7, 2021
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I took out a TSP loan. Do I claim on my taxes as income?

TurboTax Deluxe Online

Employee

A TSP loan that you are still paying back and on which you have not defaulted is not taxable.

A TSP loan only becomes taxable if you default on the loan and receive a Form 1099-R with code L in box 7 or the loan is satisfied with an offset distribution that reduces the balance to you credit in the TSP and the TSP issues a Form 1099-R that includes code M in box 7, usually upon separation from service while the loan is still outstanding. If you received either of these Forms 1099-R, they must be reported on your tax return.