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-   -   Early 401k Withdrawal. (https://www.askmehelpdesk.com/showthread.php?t=545002)

  • Jan 17, 2011, 01:43 PM
    mellow11
    Early 401k Withdrawal.
    I withdrew my 401k in 2010, now I have to do my taxes , since my wife runs a childcare at home , How can I get refund showing expenses?
  • Jan 17, 2011, 02:02 PM
    ebaines

    If your wife is running a business you should be filing a schedule C to document her income and expenses. I can't tell you whether you'll get a refund or not - don't forget that if you are under age 59-1/2 you have to pay a 10% early withdrawal penalty on the 401(k) withdrawal in addition to regular income taxes.
  • Jan 17, 2011, 04:01 PM
    AtlantaTaxExpert
    AND that 10% Early Withdrawal Penalty CANNOT be reduced by credits or deductions, since it is a punitive tax designed to discourage early withdrawals.

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