Hi, I had an IRA for a few months in 2019 and made contributions totaling about $1300. Then I decided to get rid of my IRA account because I couldn't make more contributions, then took out just the contributed amount. I received a 1099-R form from Vanguard, saying that the withdrawn amount is not taxable, as indicated by the distribution code J.
However, when I put in my 1099-R form in my Turbotax account, it made both my federal and state tax return amount go down significantly.
I make not very much money, so I usually get most of my taxes back, but just putting in the 1099-R form seemed to make my federal tax return amount reduced to 40% of what it used to be and 70% of my state tax. What is going on? Any and all help would be appreciated. Thank you.
