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Due to unemployment, I withdrew my 401K's early in order to survive & not go on...
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...welfare. Can I get tax refund? I paid taxes & penalties on these (I had about 4 different 401k plans). Did I still have to pay this due to it being a hardship like unemployment? I was trying to avoid welfare & feel like I'm being punished instead.
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There are no "hardship" exceptions in the Tax Code.
You will get credit for the withholding when you file your return. Whether you will get most of it back is determined buy your total income for the year so its too early to tell. There is no way to the the withholding back any sooner.
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The plans typically withhold 20%. 10% for tax and 10% for penalty.
If you are single and the total income you have for 2008 is less than $8950, you would get the tax portion refunded. If you made less than $16950, you may qualify for a small refund. If you make more than that, you will actually OWE in tax since this would put you past the 10% tax bracket.
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