I put in the 1099R because we took out money last year they took 20 tax and my husband was 62 at the time why are we being charged extra?

[ColeenD3]

If your husband received a distribution after age 59 1/2 and the plan administrator is withholding that amount without being instructed to, then he needs to be made aware of his mistake. There should be a Code 7 in Box 7, indicating Normal Distribution. If there is, then you are getting the money back in the form of a refund.

If you are being penalized within the program, go back over your answers in Personal Info and make sure the dates of birth are correct. 

[VolvoGirl]

They took out 20% for withholding?

You didn't actually pay the tax.  You had taxes withheld like from your paycheck. You still have to enter the 1099R and whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due.  The gross amount shows up,on 1040 line 4a/4c and the taxable amount on 4b/4d.  The withholding will show up on 1040 line 17.