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    cox24550's Avatar
    cox24550 Posts: 1, Reputation: 1
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    #1

    Feb 1, 2011, 04:23 PM
    Can you use the early withdraw penality as a standard deduction on current tax return
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Feb 1, 2011, 04:28 PM

    Early withdrawal from what? Generally it won't be.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Feb 11, 2011, 03:50 PM
    Negative. That 10% Early Withdrawal Penalty is a punitive tax that CANNOT be mitigated.

    That means that if, after the distribution income is covered by deductions and exemptions and you show NO taxable income, you STILL have to pay the 10% Early Withdrawal Penalty.
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