If you took out hardships loans how will that affect filing ?

Question

I took out a couple of hardship loans just wondering how the process works when filing, when I took them out I made sure they withheld 10 %

Answer

If they cut you a 1099 you add it to your taxes. Any income received takes away from your refund the 10% may not be enough of a tax. Based on what you took out of your checks as well. It’s like a balance. What you earn vs what you take out. Might need 20% if you made 60k for instance. Give it to whoever takes care of your taxes and they will put in the numbers and you will see in the end. Might take a little away but not a lot.

Answer

If you took the hardship loan from your 401k it’s considered income and will be taxed.  When you say you withheld 10% do you mean in addition to the 10% you were taxed and penalized for early withdrawal?

If you took out hardships loans how will that affect filing ?

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