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    mellow11's Avatar
    mellow11 Posts: 1, Reputation: 1
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    #1

    Jan 17, 2011, 01:43 PM
    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?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 17, 2011, 02:02 PM

    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 17, 2011, 04:01 PM
    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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