Question

I received a 1099-R form but was already taxed on it due to a Financial hardship. Do I still have to report this info. even if I was already taxed federal & state?

Forum|Forum|6 years ago
February 22, 2020
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TurboTax Deluxe Online

Unfortunately, what you may have been charged is a penalty from the plan administrator. Frequently, they will charge for a hardship distribution.

If you are referring to the Federal and State withholding, then yes, you have paid towards the tax on the distribution. If you paid more in than was needed, you get a refund. If you did not, you pay an additional amount. It works in the same way as withholding on a W-2.