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    doreenros's Avatar
    doreenros Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 4, 2009, 02:33 PM
    Do I have to pay the IRS twice on 401k loan default fro 2007?
    Took a 401k loan to buy my house in 2001 and in 2007 I defaulted on the loan. Filed for bankruptcy Sept. 2008. When I did my taxes for 2007 I paid $$ to IRS because of this. When I was doing my 2008 taxes, Turbo Tax asked is I'd had any distributions in previous years. I said yes, in 2007. Before I answered this question I had $$ being refunded to me; after I entered the default amount, I owed $$ to the IRS - why? I've already paid the IRS; why does it seem I will have to pay again this year? Thank you very much.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 4, 2009, 03:13 PM

    Did you use TT for your 2007 taxes? If you are sure you paid the taxes and penalties on your 401K withdrawal and did not get a 1099 then go back and tell TT No instead of Yes.
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