Question

Vanguard Retirement Early Withdrawl

Forum|Forum|2 years ago
April 14, 2024
1 reply
0 views

I have withdrawn my retirement funds from Vanguard. The tax money is withheld by Vanguard and sent remaining money into my bank account. When I am using 1099-R to file taxes in Turbotax, it shows the money I owe in taxes which is already withheld by Vanguard. How can I remove that from the money I owe?

D

DanaB27

When you enter the Form 1099-R your withheld federal taxes from box 4 will be carried to Form 1040 line 25b. The payments will be deducted from the taxes due. The distribution is included in your taxable income and you will have to pay the 10% early withdrawal penalty unless you qualify for an exception. Depending on your tax bracket, the withheld taxes might not be enough to cover full tax due.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"