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aaron-morgan60
New Member

My wife took early withdrawal from a retirement account. Upon withdrawal, she was taxed 10%. Why are we being deducted additional taxes upon filing if we already paid 10%

 
3 Replies
KarenM90
Level 11

My wife took early withdrawal from a retirement account. Upon withdrawal, she was taxed 10%. Why are we being deducted additional taxes upon filing if we already paid 10%

If it was an early withdrawal subject to the penalty, the penalty will be calculated on the return.  

 

If you already had withholding of 10% or more on the withdrawal, that will be on the 1099-R you received, be sure to enter it when you enter the 1099-R and the withholding will offset the penalty calculation.

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aaron-morgan60
New Member

My wife took early withdrawal from a retirement account. Upon withdrawal, she was taxed 10%. Why are we being deducted additional taxes upon filing if we already paid 10%

Hi, thank you. I did use my 1099R when completing the return and the amount on my 1099R (box 4) is exactly 10% of the total withdrawal. Yet when I'm completing by return and entered this information in turbo tax, my refund amount dropped significantly. 

fanfare
Level 15

My wife took early withdrawal from a retirement account. Upon withdrawal, she was taxed 10%. Why are we being deducted additional taxes upon filing if we already paid 10%

early withdrawal is a costly move. the 10% you see will just cover your penalty (10 %).

You're lucky you have any refund at all.

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