Does a the amount on a 1099-R add to my tax bill?

[timcarlson12]

Is the amount on a 1099-R taxed?

[VolvoGirl]

Maybe, maybe not.  Why did you get a 1099R?  What code is in box 7?  Did they take withholding out?

If it is taxable.........

You didn’t actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.

It has to break out and show the 10% penalty separately on your return (schedule 2 line 8 which goes to 1040 line 23). Then you get credit for all the withholding taken out on 1040 line 25b.

[timcarlson12]

Box 7 = G

My wife transitioned her 401 from her old employer and invested in with new employer. Together we made $10,000 less this year, but are paying $3,000 more in taxes and this is the only difference. Thank you for your help!!

[VolvoGirl]

G is for Direct Transfer.  No it should not be taxable.  Check your 1040 line 5b.  It should be 0 and say Rollover by it.  Unless it got put into a ROTH 401k at the new employer.  

You are paying 3,000 more, where?  For the Total Tax on 1040 line 24 or the tax due on line 37?   Compare 2023 with 2022 line by line and see what else is different.  Do you have any dependents?  If a child turned 17 you lose the Child Tax Credit.  And with lower income any credits you get might be less.  

[timcarlson12]

Federal tax due is $3,000 more. State is actually less. I can't get to 1040 unless I file which is a bummer about this program so I can't see it.

[timcarlson12]

No dependents and no other changes. We made approx. $10,000 less in income but are paying $3,000 more and this is the only difference in the process.

[VolvoGirl]

Check your withholding.   You probably had a lot less withholding taken out.  

Before filing you can preview the 1040 or print the whole return
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...