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Deductions & credits
All of the information you put into TurboTax is factored into the amount due. Since you took an early distribution from your Retirement Account the only additional amount above what you owe for Federal and State taxes is the 10% penalty for early withdrawal.
With the information, you already entered into TurboTax when you were expecting a refund. On the initial information, you received all the deductions and credits you qualified for which reduce the amount of income that is taxable. With the addition of income the balance of income against your credits and deductions changed, which increases your tax liability.
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‎February 3, 2020
9:53 AM
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