Any federal taxes withheld from the withdrawal are reported in box 4 of the Form 1099-R. You enter your Form 1099-R as received. The 10% early distribution penalty will be entered on your federal tax return, Form 1040, as a tax liability.
If your total tax payments are greater than your total tax liability then you will receive a tax refund for the overpayment.
If the total tax payments are less than your total tax liability then you will have taxes owed.
To enter, edit or delete a form 1099-R -
Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
