Solved

Already paid state and federal taxes on retirement fun. Will I have to pay more?

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

I left my last job in Nov 2017 and received a check for payout. They already took 25% federal and I believe 5-10% for state tax. When I enter this as income next year will i have to pay even more? Do I even enter it as income?

Best answer by DoninGA

If this was from a retirement fund then you will receive a Form 1099-R for the distribution. The distribution is reported on your tax return as ordinary income. Any taxes withheld will be reported on your federal and state tax returns as a tax payment (just like from a W-2). Forms 1099-R are issued in January in the year following the distribution.

Whether or not you will have further taxes owed or a tax refund is dependent on your total tax liabilities and your total tax payments.

To enter 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

DoninGAAnswer

Employee

If this was from a retirement fund then you will receive a Form 1099-R for the distribution. The distribution is reported on your tax return as ordinary income. Any taxes withheld will be reported on your federal and state tax returns as a tax payment (just like from a W-2). Forms 1099-R are issued in January in the year following the distribution.

Whether or not you will have further taxes owed or a tax refund is dependent on your total tax liabilities and your total tax payments.

To enter 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