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Am I being taxed twice for traditional IRA RMD? Taxes were taken out but how I tell TurboTax that this was done?
I am re-doing my 2023 taxes because I left out an required minimum distribution (RMD) from an inherited traditional IRA. A relative passed away in late 2023, and my siblings and I were her sole heirs. My share of her overall RMD was about $7200, and the bank distributing the IRA took taxes out of it, so the bank sent me a check for just under $5100.
When I received the 1099-R from the bank, it had in box 1 "gross distribution", $7200. The 1099-R also shows the amount that I paid in taxes in box 4 (Federal) and box 14 (State). There is no box showing the net amount after those taxes were take out. But when I use TurboTax, for the 2023 income, it asks for the "gross distribution" in box 1. This increases my total income by $7200, which I would then have to pay taxes. But I already paid those taxes as the 1099-R shows when I received the $5100.
Is there a way to indicate on TurboTax that taxes were already taken out?
Or, does the Federal and State already know how much I paid in taxes on the amount? And I keep using the $7200 figure.