We are taking required amount from IRAs and paid 10%. Do we report that as income and report tax paid?

[boogerandtigger]

When reporting income do we include automatic withdraws from traditional IRA.

[KenH1 · Accepted solution]

Yes.  The IRA administrator should have sent you a from 1099-R, that will report the distribution and the taxes withheld. To report your 1099-R:

Click Federal Taxes (top menu)

Click Wages & Income (just below top menu)

Scroll down to Retirement Plans and Social Security and click Show More (if necessary)

Click Start next to IRA, 401(k), Pension Plan Withdrawals (1099-R)

Enter your 1099-R exactly as printed, paying special attention the the distribution code in Box 7 and the "IRA/SEP/SIMPLE" box.