dmertz
Level 15

Retirement tax questions

Having taxes withheld does not change that taxable amount of the gross distribution shown in box 1 of the Form 1099-R, since federal taxes must be paid with money that has already been taxed.  The tax withholding is simply a pre-payment toward the tax liability eventually shown on your tax return.  You get credit for this prepayment on Form 1040 line 64 or Form 1040A line 40.