Withdew funds from retirement for College, and witheld the 10% for Federal taxes at that time. While doing taxes it is stating we owe the same amout we withheld. why?

[MindyB]

It depends.  Since owing taxes could stem from any number of things, it could be coincidental. Or, it could be that you are being penalized on early withdrawal, which is a 10% penalty.

Make sure you do indicate that you used the money for tuition.

Here's how to do this in TurboTax Online:

• Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
• Your withdrawal will be shown in a summary on a screen that says "Here's your 1099-R info"
• Choose "Continue"
• Continue through the interview until you arrive at a screen that says "Did you use your IRA to pay for any of these expenses?"
• Here, enter the amount of the withdrawal spent on tuition.