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Level 1
June 1, 2019
Question

I received a 1099R for a gross distribution of 251.70 from a settlement fund. Federal tax was withheld of 50.34. Why would I be taxed again?

  • June 1, 2019
  • 1 reply
  • 13 views
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1 reply

Level 8
June 1, 2019

The withholding from the distribution is just an estimate of taxes due, just like on a paycheck.  Your annual tax filing reconciles the amount you actually owe with the amount withheld.