I took a total IRA distribution of $3358.61 when I left my job at age 66 and paid a $335 and that time. I now have to pay an additional $807. Why is it taxed at 34%?

[DanaB27]

It depends on your income tax bracket and your total taxable income how much tax you have to pay. Your taxable retirement distribution is added to your total taxable income (line 15 of Form 1040)  and then the tax is calculated on the total taxable income.

Please make sure you entered the tax withholdings when you entered your Form 1099-R.

Please see What are the federal tax rates for 2021? for additional information.

[SteamTrain · Accepted solution]

The $335 was only 10%, and the extra income may put you in a higher tax bracket, subjecting it to more taxes (though not that much)...However, as already noted, first make sure you entered that withholding in box 4 of the software's 1099-R form.

BUT

IF you also started getting SS, then the extra income could be making more of your SS subject to taxation...thus, the extra taxes may be partially due to that change too.