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Retirement tax questions
The tax withholding is not overstated as you have actually paid that tax when you received your distribution.
In order to repay the gross amount distributed, you had to use other funds to replace the amount of taxes withheld. So TurboTax is correct in giving you the credit for the taxes withheld.
If your total taxes withheld is more than your tax liability, you should get a tax refund.
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March 22, 2021
11:05 AM