If this was from a retirement fund then you will receive a Form 1099-R for the distribution. The distribution is reported on your tax return as ordinary income. Any taxes withheld will be reported on your federal and state tax returns as a tax payment (just like from a W-2). Forms 1099-R are issued in January in the year following the distribution.
Whether or not you will have further taxes owed or a tax refund is dependent on your total tax liabilities and your total tax payments.
To enter a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
