1099R

Forum|Forum|2 years ago
February 8, 2024
1 reply
5 views

I have recently retired and received a 1099R form. Federal Income tax has been withheld from my taxable amount on the 1099 R form. This is my pension that I am currently living on. When it asks what I did with the money, and I click on cashed out, it adds a couple thousand dollars to what I owe. Why would I owe more taxes on the money I'm expected to live on when taxes were already withheld from the taxable amount?

xmasbaby0

Level 15

The tax that was withheld was only an estimate --- just like when you had tax withheld from your paychecks and it went on a W-2. When your retirement income is combined with all of your other income--from whatever other sources-- your total income and total amount of withholdings are used to calculate whether you get a refund or owe additional tax.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

butterfly18Author

Level 2

After I enter the 1099R form, the system says great you don't owe any more taxes on this money. But when I answer the following questions regarding what I did with the money, if the money didn't go back into a retirement account, I owe thousands more dollars. That doesn't make sense to me.

VolvoGirl

Level 15

What code is in box 7? It might mean you don't owe the extra 10% Early Withdrawal Penalty on it. Do you get Social Security? Entering income may make more of your SS taxable.