Question about my 1099R, why is it that I made $28000 and paid $3100 in taxes but TT says I still owe $4000. Why is my amount owed so much?

[KenH1 · Accepted solution]

We can't see your tax return, but keep in mind that the $28,000 will be included into your taxable income and the 10% penalty tax if you were under 59.%.

When you enter your 1099-R for an early distribution, you are simultaneously:

1) Reporting the taxable income;

2) Reporting the early withdrawal tax (if applicable); and

3) Claiming the taxes already withheld for this purpose

If you are in the 15% tax bracket, you would pay 15% plus the 10%, which is $7000 total.  Less the $3100 withheld is about $4000.

[maddenwm]

Is this 15% bracket and above because I'm in the 28% Tax bracket. So that means I'm paying 28% plus 10% for my Tax bracket? WOW...

[KenH1]

Correct.  WOW indeed...sorry!