You'll need to sign in or create an account to connect with an expert.
Yes, you have to report the withdrawal as income on your tax return. The 20% that was taken out is not the tax on the withdrawal. It's withholding, just like tax withheld from your pay when you have a job. Withholding is an advance payment towards your tax for the year, but it's not the final tax. You will receive a Form 1099-R for the IRA withdrawal. The 1099-R will show the amount you withdrew and the amount of withholding. You enter the information from the 1099-R in TurboTax, along with all your other tax information. Your tax return will calculate the total tax on all your income for the year, including the IRA withdrawal. The tax withheld from the withdrawal will be added to any other withholding that you had during the year, and the total withholding will be applied towards your total tax.
Yes, you have to report the withdrawal as income on your tax return. The 20% that was taken out is not the tax on the withdrawal. It's withholding, just like tax withheld from your pay when you have a job. Withholding is an advance payment towards your tax for the year, but it's not the final tax. You will receive a Form 1099-R for the IRA withdrawal. The 1099-R will show the amount you withdrew and the amount of withholding. You enter the information from the 1099-R in TurboTax, along with all your other tax information. Your tax return will calculate the total tax on all your income for the year, including the IRA withdrawal. The tax withheld from the withdrawal will be added to any other withholding that you had during the year, and the total withholding will be applied towards your total tax.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
chunhuach
Level 1
cryslarc1
New Member
Sanctuaryrh
New Member
kyondacooper
New Member
magellan0
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.