Why am I getting double taxed for my partial early retirement withdrawal?John Hancock already took $400 as federal income tax withheld.

[jagphan]

When I put the1099-R into my tax form it took off another 10% penalty.

[BobinCT · Accepted solution]

Yoou do get credit for the tax withheld.  It is applied to the tax resulting from the withdrawal.  Since the withholding is only 10%, it generally doesn't cover the full amount of tax.