Entered my 1099-r distribution to which my taxes were withheld but still owe more?

[jlhutto]

box 1 ~$3.5k box 4 ~$700 but software says I owe and reduce return by 10% ($350) shouldn't I have been getting additional refund as 20% was withheld but only 10% owed?

[thanewest]

It counts as income, the 10% is an extra fee separate from all other taxes... So if you had a tax bracket of 20%, you'd be paying that against the income from your withdrawal in ADDITION to the 10% fee, so more like your paying 30% tax on that 3.5k... Double whamo for you lol