I withdraw $58000 out of my 401k to purchase a house, I only received $40000.$18000 went to tax penalty and taxes.When I file my taxes will I still owe any money?

[Coolbreeze3136]

I make $52000 a year

[xmasbaby0]

Taking money out of a 401k is NOT an exception to the 10% early withdrawal penalty.   There is an exception to the 10% early withdrawal penalty if you take money from a traditional IRA to make a down payment, but that exception is not applied to early (before you are 59 1/2) withdrawals from a 401k.    So....you owe a 10% early withdrawal penalty and ordinary income tax on the distribution from your 401k.

You will get a 1099R that must be entered on your tax return.    The software will calculate your refund or tax due based on your total amount of income and tax withheld.  And.....of course all of the other variables will be used---like your filing status, standard deduction, refundable credits (if any), etc.etc. etc.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

[VolvoGirl]

You didn't actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket and can reduce any credits) and then the withholding is subtracted from the total tax to figure your refund or tax due. The 401k Gross amount shows up on 1040 line 5a and the taxable amount on 5b. The withholding will show up on 1040 line 25b.

It has to break out and show the 10% penalty separately on your return (schedule 2 line 8 which goes to 1040 line 23). Then you get credit for all the withholding taken out on 1040 line 25b.

[Opus 17]

The bottom line is, we can't tell, it depends on many factors.  You file one tax return for the whole year, that reports all your income, including this withdrawal, and calculates the actual tax.   You get credit for all your withholding, including from paychecks and from this withdrawal, and if the total of withholding (payments) is more than the total tax, you get a refund, and if the total payments are less than the total tax, you will owe more when you file.   So it depends on your age, marital status, dependents, other income, and everything else on your tax return.

You can try this calculator.

https://www.irs.gov/individuals/tax-withholding-estimator