Question

1099-R withdrawal

Forum|Forum|6 years ago
February 10, 2020
2 replies
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I withdrew money from my Roth IRA and after entering the information from my 1099-R it told me that I did not owe taxes on the withdrawal yet my federal return was reduced by large amount. Why is that?

macuser_22

Employee

We cannot see your tax return. If you withdrew only you own prior contribution then it would not be taxable and would only be on the 1040 form line 4a with no taxable amount on line 4b.

I suggest that you delete the 1099-R are re-enter in case you answered a question incorrectly.

If you withdrew any earnings then there might be some tax and/or early withdrawal penalty.

You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

E

edithirma

why is all of my ss taxable

B

BillM223

This is a thread about 1099-R distributions (pensions/annuities and IRAs).

Social Security is reported on form SSA-1099.

Are you really saying that all of your SS is reported as taxable on your federal return? That shouldn't be. No more than 85% of your SS should be taxable.

Please clarify what you are talking about and we will help you.

Remember that we in the Community cannot see your tax return nor the screen you are on.

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