"she did not received cash in her hand only about $10,000"

That isn't a taxable event. That's an end result. A taxable event is a taking or distribution of funds, directly or indirectly, that changes the nature of the funds. Example: sheltered 401(k) funds that are removed, not rolled over, and no longer sheltered. That change becomes a taxable event.

"so my question was, could she get credit for the deposit of the 50,000"

For the concept of a credit; either the money was already sheltered, and continued to be sheltered (rollover), which means there was already some sort of benefit (pre-tax deduction from payroll). You don't get another credit for an event; that would be a double-dip benefit. Or, it is no longer qualified, so any prior credit or benefit no longer carries forward. There would not be a new benefit, in other words. Nothing new has happened.

"beca use they are charging her $9000.00 in additional taxes."

It's not taxes. "They" meaning, the company in charge of the distribution, has a required withholding against taxes, when someone pulls their money out of a sheltered condition.

This math really does not work right:

"she close out her life insurance from her place of employment, it was a Roth IRA,"

Nope. A Roth IRA is outside of employer retirement plans and is personal. The employer might have had a Roth 401(k) provision. Life insurance is a product (policy). Someone pays for that coverage (employer or employee). If that is group life, it is term and doesn't carry value. Or, it was Whole Life, which is unusual through your employer. It would not typically be "in" a Roth, either. Money in a retirement plan can be invested. It might be invested in an annuity. Any "cashing out" of a policy inside of a retirement account is not by itself a reportable change. If you hold stocks and bonds and sell them and gain or lose, that is not reported from inside of a retirement account. The account won't report capital gain or loss. Anything from that account is income. The nature of the investment in the retirement plan account is not handled the same as outside (regular investment activities).

"and also took out a loan for about $20,000."

Is this a loan against whole life insurance, or against a 401(k), or what? Borrowed money from where?

"they paid the balance of loan which was about $31,000,"

By taking some of what would have been a distribution? That reduces money in her hand. That doesn't change the fact of the distribution or the amount. It would be the same as if she got all the money in her hand, then used that to pay off a loan. The loan repayment doesn't change how the funds were made available to make that payment. The funds being made available is where and when a taxable change happened.

"taxable amount was around $43,000. she open a certificate of deposit in a bank the amount $50,000."

Since you describe an amount higher when into the CD, and you still did not identify that the CD is the investment purchased from inside of a retirement account, it is assumed your taxpayer contributed to something that also had growth and/or earnings and/or employer match. That means your taxpayer's money would have been post-tax, and explains why an amount is not taxable, and the rest is taxable (because it was never taxed to begin with).

There is no tax credit for moving your own money around from place to place. There is only a consideration for when a change occurred. In this case, your taxpayer removed tax-deferred funds and did not roll it over, so it is fully taxable. She could have gone on a cruise, or put it into a CD, or just burned it. What she did not do is continue to shelter it by rolling it into an IRA of some sort, then buy a CD inside that account. And that would not be a new event, so there is no further credit. It would be a continuation of sheltering funds that were already sheltered, so there was no amount considered taxable.

That's the best I can understand what might have happened, based on some intertwined comments.

Hope that helps.