Look at your tax return Form 1040. Your taxable income is shown on Line 11b. The taxes on your taxable income is shown on Line 12a. Any amount from Schedule 2 Line 3 is added to Line 12a for the total on Line 12b.
Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
Using the "Tax Summary" tool. I find this. Side note - I already paid the 10% penalty for my 401k withdrawal. There is a box listed as "other taxes" after the "tentative tax" box. This portion is the other 10% taxes that are due from that withdrawal, BUT that withdrawal amount is included as part of my AGI and taxed in the "tentative tax" box also. So, according to what turbotax is automating, they tax that withdrawal amount once in the "tentative tax" box, and they tax it again in the "other tax" box. These numbers are hypothetical, but they loosely reflect my case.
w2 - Income - $50,000
401k Withdrawal (1099-r)- $10,000
Total AGI - $60,000
Standard Deduction - $24,400
Taxable Income - $35,600
Tentative Taxes - $3,884
Other Taxes - $1,000 <---- this is 10% of the 401k withdrawel, which is ALREADY included in my AGI and taxed and included in my tentative tax box. Why taxed again? Penalty has already been paid. and box 4 of the 1099-R shows $1,000 withheld.
I'm hoping this is some sort of glitch. Some clarification please? Thank you