401k withdrawal tax error?

[Eric Frame]

Hello, my wife and I took a $23,000 withdrawal from my 401k because of covid. The 10% early withdrawal tax was waived because of the pandemic, and I had 10% ($2,300) withheld for taxes at the time of the distribution. 

After importing this info into turbotax, it's saying I still owe an additional $5137.  What's going on here? That seems extremely high. That would mean I'm paying $7437 in taxes on $23,000. 

I'm assuming its not taking in the 10% withdrawal fee that was waived, but it still seems high.  

Anyone else have this issue?

[ErnieS0]

It does seem high but you do not say what your income is. $7,437 ÷ $23,000 is 32%. There is a 32% tax bracket for married couples earning $326,601 to $414,700.

It is also possible the 10% penalty is appearing on your return because Form 8915-E is not final. At this point and time the Form 8915-E (Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related Distributions)) is not finalized.

The 8915-E Form is projected to be e-fileable starting 02/24/2021.

Please sign-up here and we will email you once the form is live.