1099-R

Forum|Forum|2 years ago
January 31, 2024
3 replies
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I got this form. Already taxed when took out my pension federally and state. I won't have pay another round of taxes right when I file taxes?

TurboTax Basic Windows

Best answer by dmertz

You paid tax withholding which is simply a down-payment on the overall tax liability determined on your tax return. This withholding is credited on your tax return. Default tax withholding is often insufficient to cover your tax liability which depends on all items on your tax return. If your tax withholding and any estimated tax payments are insufficient to cover the tax liability, you will have a balance due.

DianeW777

No, you will not be taxed twice.

The Process: The payer of your pension is taking taxes based on the W-4P you completed for them. When your return is completed with all income, deductions and/or credits the tax liability is determined. Once that happens it is reduced by any payments through the withholding you have already paid. The difference will be either a balance due or a refund. This applies to both federal and state.

2024 Form W-4P

You can complete this as many times as you need to in any year to change your withholding if necessary for the pension plan administrator.

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ke366819Author

Ok thank you.

dmertzAnswer

Employee

Mike9241

you do have to include the info from the 1099-R in your return. this is so the income is properly included in your return and then the withholdings are applied against your tax liability.