Solved: 1099-R I entered all the information in to the boxes. I paid federal tax on the lump sum however it is taxing me again on federal, im aware that I need to pay state
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darkkiss1
New Member

1099-R I entered all the information in to the boxes. I paid federal tax on the lump sum however it is taxing me again on federal, im aware that I need to pay state

 
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SteamTrain
Level 15

1099-R I entered all the information in to the boxes. I paid federal tax on the lump sum however it is taxing me again on federal, im aware that I need to pay state

The withholding done may not have been enough.  As long as you have the withholding in box 4 of the Software 1099-R form, it is being considered.

_______________________________

Example: Person withdraws 40,000 with 20% (8,000) withholding. Early withdrawal. If that extra income happens to be in the 25% bracket on you tax file at tax time, you will still owe another 5%  in taxes PLUS the 10% penalty...or... $6,000 more.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

1 Reply
SteamTrain
Level 15

1099-R I entered all the information in to the boxes. I paid federal tax on the lump sum however it is taxing me again on federal, im aware that I need to pay state

The withholding done may not have been enough.  As long as you have the withholding in box 4 of the Software 1099-R form, it is being considered.

_______________________________

Example: Person withdraws 40,000 with 20% (8,000) withholding. Early withdrawal. If that extra income happens to be in the 25% bracket on you tax file at tax time, you will still owe another 5%  in taxes PLUS the 10% penalty...or... $6,000 more.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

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