Retirement withdrawl

alisontracy68 — Thu, 06 Jun 2019 10:46:00 GMT

My refund just went from $1600 to $980 because I withdrew $$ from my retirement acct early, but I already paid $654.41.... I do not understand!

You didn't pay the tax, you had tax withheld, just like W...

macuser_22 — Thu, 06 Jun 2019 10:46:02 GMT

You didn't pay the tax, you had tax withheld, just like W-2 withholding that will be applied now to pay the tax.

The amount of withholding was probably not enough to pay the tax for your margional tax bracket and the early distribution penalty if you are under age 59 1/2.

The box 4 (or box 12 state) withholding will be added to all other withholding, such as W-2 withholding, and be shown on line 64 on the 1040 form to offset your overall tax liability. If you are not 59 1/2 or older the there will be an additional 10% early withdrawal penalty.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

topic Retirement withdrawl in Retirement tax questions

Retirement withdrawl

You didn't pay the tax, you had tax withheld, just like W...