Question

Will I have to pay additional taxes on my hardship withdrawal if the company already took out the taxes when I received the hardship withdrawal?

Forum|Forum|3 years ago
January 28, 2023
1 reply
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I took a hardship withdrawal out and they asked if I wanted to take the taxes out at the same time that way I wouldn’t have to pay during tax time. But it seems I’m being charged agian. So how do I file a hardship withdrawal

TurboTax Deluxe Online

D

dmertz

Employee

Tax withholding is nothing more than a down-payment toward whatever tax liability is calculated on your tax return. That withholding is included on line 25b of Form 1040 as a credit against that tax liability, so you don't pay taxes twice. Make sure that box 4 of the Form 1099-R shows the tax withholding and that you have entered that in box 4 of TurboTax's 1099-R form so that you get credit for it.