"I withdrew money from my IRA this year", you mean in tax year 2023? Is this the $7,000 that you referred to?
"On my W2 from last year, it said I put in $6267.69 into Fidelity as an IRA ;" Contributions to an IRA are not normally handled by your employer. Are you sure that this wasn't a contribution to a 401(k)? It would have been on your W-2 in box 12 with a code of D.
"paid taxes at that time on that money" - to be clear, you did not "pay taxes" at that time, you had taxes withheld. All the taxes withheld will be added together an applied against the tax due when your return is done. Because you had taxes withheld does not meant that this withholding was sufficient to cover the tax assessed on the distribution.
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