Hi,
Where do we attach the Copy B on Turbotax of our 1099 R? We have Box 4 marked because had some taxes withheld. Do we need to mail our return just because of that?
Why is all the 401k money withdrew TAXABLE though we already paid in?
Erika
You can e-file after entering the 1099-R on your tax return.
The taxable amount shown in box 2a of the 1099-R is entered on your tax return as taxable income and taxed at your current tax rate. The federal income taxes paid shown in box 4 are entered on your tax return as a tax payment (just like withholding from a W-2). The taxes withheld are estimates of the taxes owed. When the taxable income from the 1099-R is added to your other income you may receive a tax refund or you may have taxes owed.
Thank you for your answer.
So no need to send my return by mail if I am positive all the info of the 1099 R is entered correctly (we actually have two 1099 R's from a previous loan but ended being early retirement as switched jobs)
Though I am understanding now we do not have to pay twice, Turbotax is saying we still owe 10 percent of the full original amount.
@sammysagen20 wrote:
Thank you for your answer.
So no need to send my return by mail if I am positive all the info of the 1099 R is entered correctly (we actually have two 1099 R's from a previous loan but ended being early retirement as switched jobs)
Though I am understanding now we do not have to pay twice, Turbotax is saying we still owe 10 percent of the full original amount.
The 10% is an early withdrawal penalty that is imposed if you withdrew the funds before you were 59 1/2. It is assessed on your federal tax return and entered as a tax liability on your tax return.