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Your 1099R distribution must have been an early withdrawal so you are getting a 10% early withdrawal penalty. Then due to having taxes withheld when you took the money out, you are getting a credit for the taxes withheld.
One is an additional tax and the other is a credit on your return.
For more detail see:
You will get credit for the 10% penalty you paid when you enter the taxes withheld as shown on the 1099-R you will receive. However, there may not have been enough tax withheld at the time you took the distribution to pay both the 10% penalty and the ordinary taxes you must pay on the amount of the distribution. The tax owed is determined at the time you prepare your tax return and you get credit for all the tax that was withheld just like you would for tax withheld on a W-2. If too much tax was withheld, you will get a refund of the excess amount. If too little tax was withheld, you will have to pay more. How much tax you must pay depends on your marginal tax rate based on your total income.
Your 1099R distribution must have been an early withdrawal so you are getting a 10% early withdrawal penalty. Then due to having taxes withheld when you took the money out, you are getting a credit for the taxes withheld.
One is an additional tax and the other is a credit on your return.
For more detail see:
You will get credit for the 10% penalty you paid when you enter the taxes withheld as shown on the 1099-R you will receive. However, there may not have been enough tax withheld at the time you took the distribution to pay both the 10% penalty and the ordinary taxes you must pay on the amount of the distribution. The tax owed is determined at the time you prepare your tax return and you get credit for all the tax that was withheld just like you would for tax withheld on a W-2. If too much tax was withheld, you will get a refund of the excess amount. If too little tax was withheld, you will have to pay more. How much tax you must pay depends on your marginal tax rate based on your total income.
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