1099R - Withdrawals from IRA showing as Income

1099R - Retired - age 65 - only living on IRA withdrawals. Paid Federal and State taxes that were withheld on the 1099R form. Distribution code 7. IRA/SEP/SIMPLE. Does the entire amount of distributions get listed as INCOME? That triggered needing to pay back over $6,000 in medical insurance tax credits for my wife.  I am thinking I categorized the 1099R wrong.