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posted Apr 14, 2025 4:34:52 PM

1099 R

My federal tax owed goes from 869 to over 5000 when I enter the pension even though I  am getting a screen that states you dont owe taxes on this money....Im not confident that the federal tax is being calculated correctly

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1 Replies
Level 15
Apr 14, 2025 5:38:30 PM

"I  am getting a screen that states you dont owe taxes on this money"

 

It's saying that you don't own additional taxes.  Code 2 in box 7 of the Form 1099-R means that the distribution is not subject to an early-distribution penalty (an additional tax).

 

It's entirely possible that you are not having sufficient taxes withheld from your pension payments to cover the additional tax liability resulting from this income.