I received a paper statement showing federal and state taxes deducted from the gross amount along with a check for the net. What form do I use to report these deductions on my taxes? My 401k web site does not reflect this statement. I have paid the loan back.
How to file taxes deducted from a 401k loan
Jan 26, 2013
2 Replies
First reply
What amounts are in what boxes on the Form 1099-R that you received? The amount of federal income tax witheld goes on page 2 of the 1040R on the line for federal income tax withheld. Sounds as if the plan administrator considers the loan to have defaulted.
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What amounts are in what boxes on the Form 1099-R that you received?
The amount of federal income tax witheld goes on page 2 of the 1040R on the line for federal income tax withheld.
Sounds as if the plan administrator considers the loan to have defaulted.
This doesn't make any sense. A loan doesn't create a tax liability unless it turns into a deemed distribution because of default or termination of employment. Without a tax liability there's no withholding. Maybe you could give us a timeline, and tell us whether you got a 1099-R? If you did get a
1099-R, what's the code in Box 7?Phil Marti VITA/TCE Volunteer Clarksburg, MD
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