I withdrew $10,000 from my retirement funds last year, and at the time my federal and state tax was withheld mandatorily, so I received around $7,200.
Now, this is my question:
Is this $10,000 again taxable when I file the tax return this year, even though I already paid the tax last year when I withdrew the money? I'm asking because when I filled out all the numbers on Turbo Tax 1099-R, I saw my Federal and State Refund amounts going down instantly. My 1099-R form clearly shows my Federal and State tax amounts withheld.
Thanks for your reply.
