I took early distribution from my Roth IRA and traditional IRA. It seems I'm paying the same percentage of tax on both, even though 10% was taken out at the time of the withdrawals.

[gringalaura]

When I took early distributions, I was under the impression that I was paying all the tax on the money up front, with the 10% that was withheld from the total amount I was withdrawing from both my Roth and my traditional IRA.  As I'm entering 1099-R info in Turbo Tax, it appears I'm being penalized the same for each account, even though my larger withdrawal came from my Roth IRA.  There is no box to check on the 1099 or in Turbo Tax to indicate whether it was from a Roth IRA or not.  I did not use the money for a qualified reason.  Regrettably, I lost all of it in a crypto scam.  Now it seems I'm hit with a heavy tax burden because of it.  I thought the tax rules were different in a Roth IRA compared with a traditional IRA.  I knew I was paying a penalty for early withdrawal, but this is excessive.   Is there any way to specify in Turbo Tax that a certain 1099-R was from a Roth IRA?

[DanaB27]

Your code in box 7 indicates that the distribution was from a Roth IRA. If you are under 59 1/2 you will have code J in box 7.  You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you enter your net contributions prior to 2024 in the follow-up questions.

1. Click on "Search" on the top and type “1099-R” 
2. Click on “Jump to 1099-R” and enter all your 1099-Rs
3. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
4. Answer "Owned Any Roth IRA for Five Years?" screen
5. Continue through the questions and make sure you enter the net contributions prior to 2024 on the "Enter Prior Year Roth IRA Contributions" screen
6. On the "Any Roth IRA Conversions?" screen answer "Yes" if you made conversions before 2024
7. Continue through the questions.

Please note if you withdraw earnings from the Roth IRA then these will be taxed at your tax rate plus the 10% penalty.  The distribution from the traditional IRA is taxed at your tax rate plus the 10% early withdrawal penalty. Therefore, your withholdings might not cover all of the tax due depending on your tax bracket.