Roth IRA partial distribution

[mamadi9999-gmail]

I took a distribution from my Roth. I entered the 1099-R with a 7 code. I noticed that the gross distribution and the taxable amount are the same. I had the federal and state income taxes taken out of the distribution as I was 63 and working at the time. Since this is with the other 1099-Rs, does that mean that it will be taxed again? The more I try to look into the topic, the more confused I get. 

I hope someone can decipher my confusion. Thanks in advance

[NCperson]

@mamadi9999-gmail taxes are ONLY determined on a tax return and no where else.   

what occured when you did the distribution was an estimate of taxes was withheld.  Think of that as a downpayment against taxes owed.

When your tax is calculated on the tax return  (line 24),  then the downpayment is applied against the tax.  Your withholdings on you W-2 is an additional downpayment

if after applying the downpayment (lines 25-33) against the tax and the result is negative, then you are due a refund (line 34)

if afer applying the downpayment (lines 25-33) against the tax and the result is positive, you still owe. (line 37)

https://www.irs.gov/pub/irs-pdf/f1040.pdf

Separately, are you sure this was a Roth IRA and not a traditional IRA? A Roth distribution is typically not taxable and it doesn't use a Code 7.  Normally a ROth would have a codes B, Q, J, T. 

[dmertz · Accepted solution]

As NCperson said, code 7 is incorrect for a distribution from a Roth IRA.  At age 63 the code would be T if at the time of the distribution it had been less than 5 years since the beginning of the year that the Roth IRA was first funded, otherwise code Q.  (Code B is for a distribution from a designated Roth account in an employer plan, not for a distribution from a Roth IRA.)

If it's been less than 5 years since beginning of the year for which you first made a Roth IRA contribution, the taxable amount must be determined on Part III of Form 8606 by applying your basis in Roth IRA contributions and conversions to determine the taxable earnings, otherwise the distribution is entirely nontaxable and the distribution does not get reported on Form 8606 Part III.