Yes the gross amount before tax withholding is added to your other income and taxed at your regular tax rate. You will get a 1099R for it to report on your tax return. You aren't paying the tax each time. It is just withholding like you had from your paychecks. You enter the full amount and will get credit for the withholding. Adding 30,000 to your income may push you into a higher tax bracket so be careful how much you take out.
