No. I think there's some confusion here. The distribution was $50,000 and the tax withheld is $12,000. $50,000 is reported in Box 1and 2A and the income tax withheld should be reported in Box 4 of your 1099R.
What program is asking if you rolled over the $50,000 to another retirement account or if you did something else with it. If you roll over the distribution to another retirement account within 60 days, you are not be taxed on the distribution. If you just cashed the money and put it into your bank account, then the amount of the distribution is taxable.
Regarding the $12,000 withheld for income tax withheld, this will be applied to the tax liability generated in your return and give you a credit. This will result in either a bigger refund lessening the taxes. owed. Once you put this information in Box 4 of your 1099R, TurboTax will use this withholding as a credit. This will make your tax liability less.
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