1099-R, Do I need to file on my taxes

[Khloesj04]

Hi All,

Quick question re: 1099-R. I’m 61 and I took a withdrawal from my 401k for which I had income tax withheld. I received a 1099R and it shows in Box 4 the amount of federal income tax withheld. Given my age is over the 59 1/2 rule and that I already withheld the income tax on the entire portion, would I still need to report this form on my taxes? 

[xmasbaby0]

Yes you must enter the 1099R on your tax return.   The tax that was withheld was only an estimate, and will be reconciled with the total amount of your other income and other tax withheld.  

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[DoninGA · Accepted solution]

Yes, you have to enter the Form 1099-R that you received on your tax return.  The taxable amount of the distribution in box 2a is added to your tax return as ordinary income and taxed at your current tax rate.  The federal taxes withheld are entered on your tax return as a tax payment.

This is no different then entering a W-2 on your return for the gross amount of income and the federal taxes withheld.

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

[KRH2210]

Keep in mind that the age 59 1/2 rule applies to the 0% early penalty withdrawal. This is not related to having taxes withheld from your distribution. 

Simple example, assume you took a $10,000 withdrawal and had 20% withheld for federal taxes. You would have received a net check for $8,000. Your 1099-R will show $10,000 in box 1 as the gross distribution. Box 4 would show $2,000 for federal taxes withheld. You will need to enter both numbers in TurboTax to property account for the withdrawal. If you don't enter the box 4 withholding amount, you will be paying income taxes on $10,000 but won't have any taxes withheld to offset the tax. 

[Khloesj04]

Thank you so much I understand now.