@jamesanddarlenec wrote:
On the 1099-R box 7 -code is 4 and there is an X for IRA/SEP/SIMPLE.
So for the IRS we can send a copy of the 1099-R that has the taxes already paid?
You are jumping the gun. If $5100 was withheld (10%), that is way less than you would normally owe. Depending on your other income, you probably owed 12% or 22%.
What you are supposed to do is enter the 1099-R as is. The taxable amount is added to your taxable income, and the withholding is added to your other withholding and tax payments.
It sounds like you entered the wrong amount of taxable income. You told Turbotax that $10,000 was taxable, when in reality all $51,000 was taxable. (Or, it was a program error, but this is unlikely.) You probably already claimed the $5100 of withholding and got credit for it on your return, this would be shown on your 1040.
You need to prepare an amended tax return to recalculate your tax and determine how much your underpayment was.
