In 2019 I withdrew $93,000 from my Qualified Retirement Plan. On my 1099-R, Line 1 shows $93,000 Gross Distribution. Line 2a Shows $93,000 Taxable Amount. Nothing in line 2b and line 3. Line 4 shows $18,600 Federal Income Tax Withheld. Nothing in Line 5 or 6. Line 7 only shows a Distribution Code of 7 and nothing in the IRA/SEP/Simple. Nothing in line 8 thru 11. Line 12 shows $0.00 State Tax Withheld. Line 13 shows my New Jersey State Payer's # and Line 14 shows $0.00 for State Distribution.
My questions is that not all of the $93,000 is earnings. The contributions where taxed with my wages earned. Why does my NJ State Tax Return Show the full $93,000 as taxable income.
