Hello I am now very worried about what additional payments/penalties I may owe at tax time for my 401K withdrawal. I lost my job last year and took out my 401K to support myself and my children. The taxable amount on the 1099-R I received says $25,520.29. It also says under federal income tax withheld $5104.06 and box 7 has a 1. I'm hoping you can give me an idea of what I may still owe IRS... I received unemployment benefits for about 9 months, of which I did have 10% tax withheld, and income of about $13,000 from first 3 months of the year... I think I'm really screwed, and since I still have not found another job, I do not have the $ to pay any owed penalty.. I was hoping for my normal refund to help us just get by a while longer... am I in BIG trouble?? Thanks for your help... I use to LIKE tax time, this year may really hurt me... J.H.

Judy:

I need to know:

- How many kids you have?
- How much you collected in unemployment compensation?
- Yourr marital status? If divorced, are you getting alimony?
- What was withheld on the $13,000 you earned in the first 3 month of 2008?

If you do not want to post that info on the forum, you can email it to me at [email protected].

The bad news is you may not get much of a refund and may have to pay a little. The good news is it probably won't be too much. If you answer ATE's questions he can be more precise.

But I would suspect your total income was between $50-60K. If you have kids and other deductions, you may not be in too high a tax bracket, so the amounts you have already had withheld may cover a good portion of your tax liability. You will have to add another $2552 (the 10% penalty) to what you owe.

Already answered in detail by email.

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Originally Posted by AtlantaTaxExpert

Already answered in detail by email.

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Just curious, Did you estimate that she will have to pay anything? Not looking for details, just whether she will need to pay or get a refund.

She had to pay a small amount (less than $100) as it currently stands, but she also had deductible moving expenses plus a second adult child that I am convinced she can claim as a dependent, so she should be getting a refund when she files.