Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption

[Jessicaesmith15]

Why do I have to pay $260 to cash $900 out of my 401k thats way more than the 10 percent penalty and i had an exemption.

[ColeenD3]

Did your tax increase that much immediately before and after you entered the form or it that the amount of tax you owe? You are subject to both tax and a penalty. Did you enter the exemption in the program? Compare your 2018 and 2019 returns to see any discrepancy.