Where may I see or enter the Federal Tax Witheld from a Beneficiary (non-RMD) IRA Distribution?

[moiratoner]

It appears that TT is taking the gross distribution as net. When I take a distribution from the inherited account I always ask for 10% or15% to be withheld as income tax. For example, if my total annual distribution were $1000, and the total amount withheld for income tax is $100, then I'd expect the 1099-R section of TT to show a gross distribution of $1000 and/or a net distribution of $900 with $100 income tax withholding/payment accounted for...somewhere.  Turbo Tax is using the gross amount only, and no where to separate that into cash distribution and tax withheld and/or nowhere that shows the tax withheld amount. I've checked against my investment company records to confirm that tax was withheld and that the net distribution is significantly lower than the gross amount.  TT and investment company agree on the gross amount. 

Where can I see how TT accounting for the income tax withheld over the past year?  

[rjs · Accepted solution]

The federal tax withheld should be in box 4 of the 1099-R. You just enter it there. (If state tax was withheld it would be in box 14.) But on your tax return you report the gross distribution, not the net amount that you received. And the 1099-R box 1 and box 2a show the gross amount. The 1099-R does not shoe the net.

The tax withheld will be included in the amount on Form 1040 line 25b. That's where it gets accounted for and applied against your tax for the year.

(This is similar to your W-2. Box 1 of your W-2 shows gross wages, before any tax that's withheld. And you report the gross wages as income on your tax return. The federal tax withheld on your W-2 is reported on Form 1040 line 25a.)

[VolvoGirl]

You didn’t actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.

[moiratoner]

Awesome. I'll expect to see the tax paid on Form 1040 line 25b. Before I posted this question, I did try to look at my saved and reviewed Federal return for that detail. Even though I'm able to ask TT to check the return, I'm not able to see the detail...yet. 

You absolutely saved me! I'm sure I'll see it exactly as you say, as soon as I can see it.       

[moiratoner]

As mine are Beneficiary (non-RMD) IRA Distributions, I had the choice of pre-paying tax on distribution or not. I did pay at the time of distribution, and was looking to reconcile those amounts. Thank you for replying!

[fanfare]

Use Tax Tools -> Preview My 1040    to see the form.

To see the entire return, you'll have to pay first.

@moiratoner