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Retirement tax questions
Perhaps you are eligible for an exception to the 10% penalty for early withdrawal. This TurboTax Help explains the exceptions available under Early distributions.
If you withdrew an extra 10% to cover any additional penalties, that means that you hoped to pay a 10% income tax rate.
You do not report how much income was reported on the IRS form 1099-R. It is possible that the taxable amount reported by the IRS form 1099-R moved you into a higher tax bracket where the highest taxable dollar may have been taxed at a rate greater than 10%.
As an example, this TurboTax Help displays the Single tax brackets of 10%, 12%, 22%, 24%, 32%, 35% and 37%. It may be that the marginal tax rate for the IRS form 1099-R income was taxed as high as 37%. Taxable income is reported on your IRS form 1040 on line 15.
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