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Jesusa
, If I took out an in-service withdrawal from my…

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If I took out...

If I took out an in-service withdrawal from my 401k and paid the Federal taxes and state taxes does the income be included in my gross income for tax purposes

Submitted: 2 years ago.Category: Tax
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Answered in 16 minutes by:
2/3/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,385
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

Yes, even though tax was withheld on both the federal and state level, the distribution is required to still be reported on your return and is added to your income.

The tax withheld is also reported so you receive payment credit for the taxes withheld.

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