I received two early distributions. I paid 20% tax on the first and 30% tax on the second, but Turbo Tax is calculating 10% tax total still due. How can I correct this?

Early distributions of a qualified retirement benefit in 2020.

Retirement tax questions


You didn't pay the tax, you had tax withheld, just like W-2 withholding that will be applied now to pay the tax.

You are REPORTING the taxable amount and the amount of tax withheld. If there is a difference between the two you will either owe additional tax or it will be applied to your refund.

The actual tax depends on your other income and margional tax bracket. If not enough tax was withheld, you will owe more.

The box 4 (or box 14 state) withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 25 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Retirement tax questions

Thanks, I’d entered the data of the 1099R and had gone through all the subsequent questions. The final page indicated that I would be taxed the additional 10% for the early distribution, which I voluntarily withheld from the second distribution. The amount shown on the screen is 10% of the total distribution although I already voluntary withheld some of that amount. 

Retirement tax questions


@kvrr14720 wrote:

Thanks, I’d entered the data of the 1099R and had gone through all the subsequent questions. The final page indicated that I would be taxed the additional 10% for the early distribution, which I voluntarily withheld from the second distribution. The amount shown on the screen is 10% of the total distribution although I already voluntary withheld some of that amount. 


The box 4 withholding goes to the 1040 line 25b to offset any tax that you have (just like W-2 withholding).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Retirement tax questions

Ooo, got it. Jumped the gun. That screen stopped me in my tracks. Thanks for your help.