@smolinskijj
Let's take this step by step.
1) You received a 1099-R with $15,000 income in box 1 and withholding of $1,500 which is 10% penalty for early distribution. The fix was to indicate the rollover, thus making it non-taxable. Only you could only roll over $13,500 because of the $1,500 was sent to the IRS and was not yours to roll over.
2) You now have $1,500 (withholding not rolled over) taxable income. You also have $1,500 added to tthe entire amount of withholding.
3) if your income was $80,000 it would now be $81,500, assuming you handled the rollover correctly.
