By Mike Miles
January 14th, 2013 | Uncategorized
Q. What would be the tax rate on a TSP taxable distribution due to an unpaid loan stemming from a transfer of function/work? My human resources office did not make appropriate change in time and left me with a balance amount (lump sum) I could not afford to pay back in order to continue loan payment. Now I’ll have to pay taxes on a taxable distribution of $11,680. Just trying to figure out how much I’ll owe. I’m hoping my refund will cover the taxes due.
A. The distribution will be included on your tax return as ordinary income, and the amount you’ll owe can only be determined by completing your return.