turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

daddeoski
New Member

Wife is 62, she withdrew $2,640 from her Vanguard IRA. This reduced our Federal refund by ~$1,000. Are we being overcharged? How do we verify true tax on the withdrawl?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
IreneS
Intuit Alumni

Wife is 62, she withdrew $2,640 from her Vanguard IRA. This reduced our Federal refund by ~$1,000. Are we being overcharged? How do we verify true tax on the withdrawl?

Since your wife is over 59-1/2 she isn't charged the 10% early withdrawal penalty, so the distribution should be taxed as regular income.  Are you in the 35-38% tax bracket?   That would be the amount of tax on a $2,640 distribution.

Check these items on the 1099-R entry form:

  • Look at box 7 to make sure the code is 7 (normal distribution);
  • Check that the IRA/SEP/SIMPLE box is marked; and
  • Check Box 4 to make sure that any withholding is entered.

You can preview your 1040 by following these steps:

 

 

  1. While in your return,  click on Tax Tools > Tools (in the black bar at the side of your screen).  
  2. Click on Tools.
  3. In the Tools Center, under Other helpful links click on View Tax Summary. 
  4. In the black bar (on the side) click Preview my 1040.  

You will be able to see the income included in your return and how the tax is calculated.

 

[Edited | 4/9/2020 |  10:29am PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
IreneS
Intuit Alumni

Wife is 62, she withdrew $2,640 from her Vanguard IRA. This reduced our Federal refund by ~$1,000. Are we being overcharged? How do we verify true tax on the withdrawl?

Since your wife is over 59-1/2 she isn't charged the 10% early withdrawal penalty, so the distribution should be taxed as regular income.  Are you in the 35-38% tax bracket?   That would be the amount of tax on a $2,640 distribution.

Check these items on the 1099-R entry form:

  • Look at box 7 to make sure the code is 7 (normal distribution);
  • Check that the IRA/SEP/SIMPLE box is marked; and
  • Check Box 4 to make sure that any withholding is entered.

You can preview your 1040 by following these steps:

 

 

  1. While in your return,  click on Tax Tools > Tools (in the black bar at the side of your screen).  
  2. Click on Tools.
  3. In the Tools Center, under Other helpful links click on View Tax Summary. 
  4. In the black bar (on the side) click Preview my 1040.  

You will be able to see the income included in your return and how the tax is calculated.

 

[Edited | 4/9/2020 |  10:29am PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies