Can the $7,500 EV tax credit be used against a 401K withdrawal penalty/tax?

Just wondering if I were to take, say 10-15k out of a 401K to do some work but I also purchased an EV this year. Would I be able to apply the tax credit to the penalty or additional taxes due? I have an esop that is my primary retirement plan and I’m unlikely to get much benefit as it stands from the tax credit, but I could definitely use some money for some additional work around the house that has come up unexpectedly. It would be great if I could get it without the extra payments and just take the hit up front.

Edit: it doesn’t appear to apply to the 10% penalty but I think it would still apply to the adjusted income from the payment, e.g. if I asked them to not withhold taxes from the withdrawal. I usually float around 100-300 refund so I would assume that I’d have taxes due beyond the normal anyway

https://ttlc.intuit.com/community/retirement/discussion/can-the-10-penalty-for-early-withdrawal-from-401k-still-be-tax-deductible-if-i-m-eligible-for-an-ev/00/238391/amp

Submitted November 06, 2022 at 03:52AM by QuestionableCoding https://ift.tt/gZvOpWe