On 1099R Goss Distribution is the same amount as Taxable amount, federal tax amount is 10% of Gross amount, line 7 has code 3. Once entered into TurboTax the system still shows an additional Federal Tax due is 10% of total from Gross Distribution + Taxable Amount. First question shouldn't code T be used since the person is totally disabled & had the IRA for over 5 years? Second question is Federal Tax was already paid why is an additional 10% being applied to both Gross and Distribution amount? Please help.
