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    lz208's Avatar
    lz208 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 3, 2010, 09:09 AM
    Is early 401k withdrawl taxable on Michigan state tax?
    I withdrew $16,250 from my 401k to purchase my first home. I received my 1099-R and already had the 20% held for early distribution and I do know that I have to pay the 10%penalty on my Federal 2009 Income tax return. I'm lost if I have to pay Michigan State Taxes on the $16, 250? I did Turbo Tax and it did count it as income and then another program in which on Schedule 1 it deducted it from my income and not taxed? Two different answers. Help please!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 26, 2010, 02:16 PM
    Were you living in Michigan in 2009 as a resident of Michigan?

    If so, then the 401K distribution is subject to Michigan income taxes.

    If not, then no.
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