1099-r form we have the same amount gross dist., and taxable amount even tho we took over 25% out for federal. are they still taxing us for full amt even tho we pd xtra?

[VolvoGirl]

Yes.  You pay tax on the full amount before the tax withholding was taken out.  Then you get credit for the withholding on line 25b.  You didn't pay the tax.  That was just estimated withholding to cover the tax due on your return.

[DoninGA]

The taxable amounts withdrawn are entered on your tax return as ordinary income and taxed at your current tax rate.  Any federal taxes withheld are entered on your tax return as a tax payment.

If your total tax payments are greater than your total tax liabilities you will receive a tax refund for the overpayment.

If your total tax payments are less than your total tax liabilities then you will have taxes owed.