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New Member

I paid taxes already on a 1099-R why do i have to pay them again

it clearly states on my 1099-R that I paid my taxes why is this program saying i have to pay again and adding the whole amount as income
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Alumni

I paid taxes already on a 1099-R why do i have to pay them again

The amount withheld from your distribution was only an estimate, just like withholding from your paycheck. The exact amount of tax is not known until you prepare your tax return, because it depends on how much other income you have. The distribution is added to your other income  and taxed at whatever your marginal rate is, and the early withdrawal penalty is added, if appropriate. The total amount of added tax may be more or less than what was withheld. You get full credit for the tax that was withheld at the time of withdrawal. You aren't being taxed again, just once accurately.

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Alumni

I paid taxes already on a 1099-R why do i have to pay them again

The amount withheld from your distribution was only an estimate, just like withholding from your paycheck. The exact amount of tax is not known until you prepare your tax return, because it depends on how much other income you have. The distribution is added to your other income  and taxed at whatever your marginal rate is, and the early withdrawal penalty is added, if appropriate. The total amount of added tax may be more or less than what was withheld. You get full credit for the tax that was withheld at the time of withdrawal. You aren't being taxed again, just once accurately.

View solution in original post

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New Member

I paid taxes already on a 1099-R why do i have to pay them again

So where do I get credit for the tax I already paid at withdrawal time. Where do you add that on the form and where does it adjust.

Thanks for responses!

rick

Level 15

I paid taxes already on a 1099-R why do i have to pay them again


@rar8195 wrote:

So where do I get credit for the tax I already paid at withdrawal time. Where do you add that on the form and where does it adjust.

Thanks for responses!

rick


You enter the Form 1099-R as received. 

The federal income taxes withheld and shown in box 4 of the form are entered on your federal tax return as a tax payment (just like from a W-2).  The taxable amount shown in box 2a of the form is entered on your tax return as ordinary income and taxed at your current tax rate.

If your total tax payments are greater than your total tax liabilities then you will receive a tax refund for the overpayment.  If the total tax payments are less than your total tax liabilities then you will have taxes owed.

 

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

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New Member

I paid taxes already on a 1099-R why do i have to pay them again

I had paid the government $329.00 in May 2020.  Do we have to pay you again since cornavirus is here???

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Level 15

I paid taxes already on a 1099-R why do i have to pay them again

Pay who for what?  Did you already file and pay a tax due?  Or are you filling out your return now?  Did you get an email asking for a payment?

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New Member

I paid taxes already on a 1099-R why do i have to pay them again

Just wondering if I have to paid it again if the IRS has received the payment or not???

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Level 15

I paid taxes already on a 1099-R why do i have to pay them again

Oh,  how did you pay it the first time?  Are they suppose to take it out of your bank account or did you mail them a check?  Was your return accepted?  The tax due is not due until July 15 this year.  Check your bank account or credit card to see if it was paid.  

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