My 1099-R has distribution code 3. When I click next to move on Turbo Tax immediately takes out unpaid federal taxes on the amount, even though my pension is an on duty disability. I’m also passed the required retirement age so no federal taxes should be withheld. When I move onto the follow up questions and check yes for the question “was this pension received from employment as a public safety officer……….,” the owed federal taxes remain. What am I doing wrong?
