Is there a tax rate difference on a Qualified Plan with normal distribution for a 1099-R compared to wages from a W-2? My withholdings are the same for both and when I enter the W-2 information from each of my part-time jobs I have a sizeable return coming back from state and federal, but when I enter my 1099-R it wipes out my returns and causes me to owe taxes. I have no idea why the 1099-R eliminates my returns and causes me to owe taxes if my withholdings are the same as each W-2 and the 1099-R. Not that it should matter, but the 1099-R is from a state teacher retirement system which is a pension as opposed to receiving Social Security. My deductions assist with removing the tax debt that I owe, but I would like to figure out what is going on. All I know to do is increase my withholdings on my 1099-R.
