I entered 1099-R data, TT returns "Good News: You Don't Owe Any Extra Taxes on This"; However, Fed Tax increases $1484, and State Tax increases $361. Any ideas why? Thx!

posted

The TurboTax language is referring to the 10% penalty for early withdrawal from a retirement account, which is "extra" on top of whatever income tax you owe. According to the way you entered the 1099-R, some or all of it is taxable for regular income tax.

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