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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I was terminated from my job in Nov. of 2007. This made my

Customer Question

I was terminated from my job in Nov. of 2007. This made my outstanding loan balance aganst my 401k a taxable distribution. Ths was not reported to me or the IRS on form1099 until tax year 2008. Must I report it for tax year 2008 or is it possible to amend my 2007 tax return and claim it for 2007 instead?
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

Seems as the administrator of your 401k account was following rules that you had two months to pay back your loan before it was deemed as distribution.


So you outstanding loan balance was deemed as distribution not at the time of termination but at the time you passed the deadline to repay the balance.

And that happened in 2008.


Yes - that is your 2008 taxable income and you need to report it on your 2008 tax return.