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I paid federal income tax upon withdrawal of insurance policy. They sent me a 1099-R, and I submitted it again when filing taxes recently. Did I pay taxes twice?

 
2 Replies
PaulaM
Expert Alumni

I paid federal income tax upon withdrawal of insurance policy. They sent me a 1099-R, and I submitted it again when filing taxes recently. Did I pay taxes twice?

Did you have 20% withheld?
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AnnetteB
Intuit Alumni

I paid federal income tax upon withdrawal of insurance policy. They sent me a 1099-R, and I submitted it again when filing taxes recently. Did I pay taxes twice?

No, you only paid taxes one time when submitting your tax return.

Having taxes withheld from your distribution is just like having taxes withheld from working at a job. 

When you work the taxes that are withheld are reported on your W-2 and on your tax return along with your income where you might get a refund or owe more money. 

With your insurance policy withdrawal, the taxes withheld were reported on your Form 1099-R and on your tax return.  Your withdrawal amount is included with your other income.  Then the amount withheld for taxes is put toward any income taxes you may owe.   


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