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Returning Member
posted Jun 4, 2019 9:13:07 PM

401K already taxed 30% but turbo tax is calculating the additional 10% that was already paid, how should I correct this

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1 Best answer
Level 15
Jun 4, 2019 9:13:14 PM

The federal taxes withheld and shown in box 4 of the Form 1099-R are entered on your tax return as a tax payment.  If the distribution was an early withdrawal then there will be a 10% early withdrawal penalty assessed as a tax liability on Schedule 4 Line 59.  The totals from Schedule 4 flow to the Form 1040 Line 14.

If your total tax payments are greater than your total tax liabilities then you will receive a tax refund for the overpayment.  If your total tax payments are less than your total tax liabilities then you will have taxes owed.

To enter a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R

5 Replies
Intuit Alumni
Jun 4, 2019 9:13:09 PM

Was this considered an early withdraw?

Returning Member
Jun 4, 2019 9:13:10 PM

Yes.  I was taxed 30% off the amount and paid it already

Returning Member
Jun 4, 2019 9:13:11 PM

I already paid the 10% penalty I believe that turbo tax is charging again

Level 15
Jun 4, 2019 9:13:13 PM

You had taxes withheld from the withdrawal.  The penalty is only assessed on your tax return.  The distribution is entered on your tax return as ordinary income and is included with any other income you have reported, all taxed at your current tax rate.  The taxes withheld from the distribution are included with any other taxes you had withheld and entered on your tax return as a tax payment.

Level 15
Jun 4, 2019 9:13:14 PM

The federal taxes withheld and shown in box 4 of the Form 1099-R are entered on your tax return as a tax payment.  If the distribution was an early withdrawal then there will be a 10% early withdrawal penalty assessed as a tax liability on Schedule 4 Line 59.  The totals from Schedule 4 flow to the Form 1040 Line 14.

If your total tax payments are greater than your total tax liabilities then you will receive a tax refund for the overpayment.  If your total tax payments are less than your total tax liabilities then you will have taxes owed.

To enter a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R