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April 30, 2025
Question

I took out an early withdrawal from my IRA and it shows on my 1099-R taxes were paid for state and fed, how do I show that on my 2024 taxes?

  • April 30, 2025
  • 2 replies
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2 replies

DawnC
April 30, 2025

Enter all of the boxes when you enter the 1099-R.   TurboTax will automatically transfer state withholding to your state return and apply the federal withholding to your Form 1040.  Where do I enter a 1099-R?

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VolvoGirl
April 30, 2025

You didn't actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket and can reduce any credits) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.


It has to break out and show the 10% penalty separately on your return (schedule 2 line 8 which goes to 1040 line 23). Then you get credit for all the withholding taken out on 1040 line 25b.