The software just tells you there is a 10% penalty...and one is calculated on your tax return.
The withholding already done, and that you entered in box 4 of the 1099-R form, will be applied as a credit against that penalty, and any other taxes you may owe for the early withdrawal,, or even any other taxes you may owe too.
So it balances out properly. That's the way it is supposed to work.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
