My husband cashed out his 401 k and it was taxed when he did it but now we are being taxed again? We have never done this so is this normal

[Hal_Al · Accepted solution]

You did not "already pay tax". What you paid was only withholding, an estimate of the tax and penalty due. No piece of income is taxed individually. All your income, including pension plan distributions, is added together at tax filing time. The tax is calculated on that total (after adjustments, deductions,  and credits). Then withholding is subtracted to determine if you owe more or get a refund.

[dereklarson87]

Thank you! That makes more sense.