- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
@mamadi9999-gmail taxes are ONLY determined on a tax return and no where else.
what occured when you did the distribution was an estimate of taxes was withheld. Think of that as a downpayment against taxes owed.
When your tax is calculated on the tax return (line 24), then the downpayment is applied against the tax. Your withholdings on you W-2 is an additional downpayment
if after applying the downpayment (lines 25-33) against the tax and the result is negative, then you are due a refund (line 34)
if afer applying the downpayment (lines 25-33) against the tax and the result is positive, you still owe. (line 37)
https://www.irs.gov/pub/irs-pdf/f1040.pdf
Separately, are you sure this was a Roth IRA and not a traditional IRA? A Roth distribution is typically not taxable and it doesn't use a Code 7. Normally a ROth would have a codes B, Q, J, T.