I withdraw funds pre-retirement from TIAA account withholding max 20% tax penalty up front. I've prepaid estimated fed/state taxes and owe no more tax. So how 2 report?

[tjonline2112]

As far as I can tell, reporting involves paying taxes on those withdrawals twice.  Where do I report that the estimated taxes have already been paid?

[DoninGA]

The federal taxes withheld from the retirement account will be reported on a Form 1099-R which you will receive from the plan administrator in January 2021.  The Form 1099-R is entered on your tax return.  The federal taxes withheld will be entered on the tax return as a tax payment.

To enter, edit or delete a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Estimates and Other Taxes Paid
• On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

Or click on Tax Tools on the left side of the online program screen.
Click on Tools
Click on Topic Search
Type in estimated tax payments, click on GO

Federal estimated taxes paid are entered on Form 1040 Line 26

[SteamTrain]

.....and to be clear, any taxes withheld and reported in the boxes on the 1099-R, are only entered when you enter the 1099-R form in the software. 

You only enter other separate estimated tax payments into the software , if you personally made some extra payments to the IRS out of your pocket/bank account/credit card....either thru the mail with a 1040-ES form, or directly on the IRS's Direct Pay website.

[VolvoGirl]

And you won't know that you don't owe any more tax until you complete your return.  The withdrawal will add to your other income and may push you into a higher tax bracket.  The withholding may not be enough to cover all the tax due.

[tjonline2112]

Thanks.  Got the 1099-R.  When choosing to withhold, TIAA states the withholding is for federal and state tax pre-retirement penalty.  On the 1099-R, box 4 says 'Federal income tax withheld'.  So, I suppose I have to report all that on line 26.  What would I put on state (Georgia) withheld?

[VolvoGirl]

Any state withholding will be on 1099R box 14.  You have to enter the 1099R exactly as shown.  Line 26 of what?  What are you filling out?  Just enter the 1099R.  

[SteamTrain]

.....on a 2020 1099-R form, the GA withholding is whatever is in box 14....though I find it hard to believe that any 2020 1099-R forms have been issued yet.

Unless you've been talking about 2019 taxes all along and failed to tell us that.

___________________________

In a 2019 1099-R , but only on a 2019 tax return and 2019 software, the state withholding is shown in box 12 

[DoninGA]

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@tjonline2112 wrote:

Thanks.  Got the 1099-R.  When choosing to withhold, TIAA states the withholding is for federal and state tax pre-retirement penalty.  On the 1099-R, box 4 says 'Federal income tax withheld'.  So, I suppose I have to report all that on line 26.  What would I put on state (Georgia) withheld?

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When using the TurboTax software the program will put the federal taxes withheld from box 4 of the 1099-R on the 2020 Form 1040 Line 25b.

Any estimated taxes you enter the program enters that amount on the 2020 Form1040 Line 26.

[VolvoGirl]

I looked at 2020 1040 line 26.  That is only for extra estimated payments you sent in to the IRS by check or online.  Not the withholding from the 1099R.  The 1099R withholding will automatically go to line 25b when you enter the 1099R box 4.  Do not enter it again any where else.

[tjonline2112]

I think I DID fail to tell you that.  Apologies.  Thanks for all the helpful advice.