So I'm a bit confused here. I started receiving annuity payments in 2024 after receiving a lump sum in October. On the 1099-R that I received, it says the Gross Distribution is $28,941 and the Federal Income Tax Withheld is $5,492. When I enter all of this information into TurboTax, it shows that all $28k is taxable income and I owe a pretty hefty chunk. If almost $5,500 of tax was withheld, how is all $28k taxable? Is this an miscalculation in TurboTax's software or am I not understanding correctly? Thanks in advance.
