My Turbotax prepared returns show my total federal withholdings are more than my W2's. They do not match my totaled W2 Federal Withholding. Why is this? thx

[Rainman12]

What's the sum of your W-2 Box 1 amounts? Sum of Box 2 withholding? 

[aindub2300]

Hi, sorry for the delay.

My W2 Federal withholding is 2528.32 and my spouses is 188.25 for a total of $2,716.57, but my Turbotax prepared Federal withholding says $3,021. Is there a reason for this discrepancy or error?

thanks

[aindub2300]

Box 1 for me Marcus Ainsworth is $56,688.62, box 2 $2528.32

Spouse Box 1$16,732.53 and box 2 $188.25

[VolvoGirl]

If you have a lot of investments there is an extra Medicare tax on Schedule 4 line 62 which goes to 1040 line 14.   That is offset with an extra amount on line 16 with withholding.

Or did you make a payment  with extension or estimated payments that should be on line 17?

You might have to delete the W2s and re enter them.  That usually clears something out.  After you delete them see if you still have an amount on line 16 for withholding.

[aindub2300]

I do not have investments. Only an IRA and 401k from employer.

I did not make any payment with extension.

The only abnormal thing for me that year was that I took a withdrawal from my 403b in the amount of 1,527 and paid an upfront penalty of $427 as I only received $1,100 from this withdrawal and then believe I paid again through the 1040 somehow.

Also, I do not recall actually entering my own W2 information when I filed through turbotax as I think I recall entering my employer # and if I am correct, Turbotax automatically pulled up our W2's and entered it for me.

When you say delete the W2's and reenter them, do you mean log back into Turbotax and find them, delete and reenter? If so, I mailed off my 1040 to the IRS in late March. So they already have this information. Also, they recently mailed me a form telling me we forgot to sign and include the W2's. So I did that and in the process I saw that our W2's do not total up to what turbotax came up with on the 1040. 

thanks

[VolvoGirl]

Oh you got a 1099R for the 403b Distribution?  Yes that has withholding on it in box 4.  Is box 4 your 304 difference?

You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due.

It has to break out and show the 10% penalty separately on your return, (Schedule 4 line 59 which goes to 1040 line 14)

Then you get credit for all the withholding taken out on 1040 line 16.  

So you dont need to delete and re enter the W2s.

[VolvoGirl]

They took 427 out?  Was some of that for state in 1099R box 12?  

[aindub2300]

yes I believe it was a 1099R I accessed electronically from my 403b provider and I did enter the whole (gross amount) in box 4b and that total is $1,527. 

I do understand paying the 10% up front then the total gets entered as my taxable income possibly putting me into a higher tax bracket which I don' think it did since it was a small amount. (?)

Schedule 4 line 59 shows $153.

And line 16 again has #3,021 which is larger than our total W2 withholding of $2,716.57. 

 Just want to know if I am going to have to pay more because these 2 numbers are different since the fed withholding is more than my W2 total. 

Am I missing something?

thanks

[VolvoGirl]

Read my post again.  You did not pay the 10% or tax upfront.  It was taken out just like your W2 withholding to be applied to the total tax on your return.  As you can see the 10% $153 is an extra tax on your return.  

You need to actually see the 1099R.  You should have a copy of it.  Maybe you can download a copy from the plan.  Look though all the worksheets in your return.  One should be for the 1099R.  

The $427 they took out is just extra withholding.  Some for federal and maybe some for state.  It is just to cover the tax and penalty.  

[Texas Roger]

Line 16 on form 1040 is the total of all the federal withholding from the W-2s PLUS all the federal withholding from the 1099-R. That is why the withholding on line 16 is more than just the total of your W-2s.

[aindub2300]

ok than you again. I will review the 1099r and reread your reply, but last sum it up question. Will I owe extra since my 1040 fed withholding is larger than what my W2 is reporting? Is there anything I need to do or any concerns? 

thanks

[VolvoGirl]

NO!  You actually owe less.  As Texas Roger said line 16 is the total of your W2 withholding PLUS the 1099R withholding from 1099R box 4.  You are ok.

[Texas Roger]

I'm not sure how to get you to understand that your federal withholding amount on line 16 is your W-2 withholding plus your 1099-R withholding. I suspect the sum of those withholding amounts adds up to the amount on line 16.

Whether it does or doesn't, you don't need to do anything unless the IRS sends you a notice requesting you to do something. 

[VolvoGirl]

Ok using your amounts.  They took 20% out for federal taxes and probably 8% for state taxes.  

The $427 taken out equals

1,527 x 20% = 305 for federal

1,527 x 8% = 122 for state

So your withholding on line 16 is

$2,528 + 188 + 305 = $3,021

And Check your state return.  The state withholding should be $122 more than your W2s.