don't understand Additional tax on IRAs and tax-favored accounts?

[xmasbaby0]

I PAID TAX ON THE RETIREMENT MONEY ALREADY

You had tax withheld from the distributions from the retirement account, just like when an employer withheld tax from your paychecks.  When you enter it all into the software, the calculations are done to reconcile the amount of income you received and the amount of tax that was withheld.  You might owe more or you might get a refund.

[roncarlini]

But doesn't the amount of the IRA distribution and pension funds go into total income?  And thus the tax owed is from the total adjusted income?  

[xmasbaby0]

Yes.   If you had tax withheld when you took a distribution or had tax withheld from a pension or even from Social Security benefits---it is just like when an employer withheld tax from your paychecks.  That was an estimated amount of tax.   All of your income and all of your tax withheld has to be entered, and then the software reconciles it and determines if you get a refund or owe more.

[roncarlini]

Turbotax stated-my total tax before any credits was $21,530, which includes $455 in additional tax on IRAs and tax-favored accounts.

But if I calculate taxes based on income it  is 21,075 and still don't understand where the 455 is coming from since all proceeds are included in income.  Thanks for your help

[Opus 17]

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@roncarlini wrote:

Turbotax stated-my total tax before any credits was $21,530, which includes $455 in additional tax on IRAs and tax-favored accounts.

But if I calculate taxes based on income it  is 21,075 and still don't understand where the 455 is coming from since all proceeds are included in income.  Thanks for your help

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"additional tax" means a penalty.  We can't see your return so we don't know what is happening.  Penalties can come from contributing to an account when you are not eligible, or more than you are eligible to contribute; or a withdrawal before age 59-1/2; or withdrawals that are less than your RMD.

[VolvoGirl]

Did you enter more than one 1099R?  Were any of them for the RMD?  There is a problem with that.  Turbo Tax might think you didn't take enough RMD from your accounts.  Turbo Tax changed this year. When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that single 1099R for the RMD, not the total RMD for all. Even if they would add up to more or less. And maybe try leaving the cents off both the 1099R and the RMD questions.