A simple withdrawl from IRA is double taxed with capital gains. Why is that?

[DoninGA]

Capital gains?  A withdrawal from an IRA is not subject to capital gains nor is reported as being a capital gain.  Where are you see this?

When you enter the Form 1099-R the taxable amount of the withdrawal is entered on Form 1040 Line 4b as ordinary income and taxed at your current tax rate.

[DanaB27]

You do not pay taxes on capital gains in an IRA.

A distribution from a traditional IRA is always taxable income unless you had made and recorded nondeductible contributions.

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free but earnings will be taxable if they are not Qualified Distributions.

Please answer all follow-up questions carefully after you entered your 1099-R.