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February 18, 2023
Question

We paid taxes when we did an early withdraw from our IRA. When we withdrew we paid 10%, turbotax is trying to say we still owe 10%?

  • February 18, 2023
  • 1 reply
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1 reply

February 18, 2023

Please be aware, that the traditional IRA distribution is taxed according to your income tax bracket. Furthermore, if it is an early distribution then you have a 10% early withdrawal penalty unless you meet an exception

 

With Roth IRA distributions only the earnings are taxable and subject to the 10% early withdrawal penalty, please make sure your answer the follow-up questions carefully (after you enter all Form 1099-Rs click "continue").  

 

Any taxes that you had withheld on your Form 1099-R will be listed on Form 1040 line 25b and applied towards any taxes due.

 

To preview Form 1040:

 

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left
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