- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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%
Do you have an Intuit account?
You'll need to sign in or create an account to connect with an expert.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
Still have questions?
Make a post