Level 2

Question

1099-R

Forum|Forum|4 years ago
March 4, 2022
4 replies
15 views

If client paid taxes for State and Federal on IRA with pulling out why are they still getting taxed more??

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Seriously?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

christina85Author

Level 2

Yup takes about $2,000 from her when i add it in never had this issue

dkh

Level 15

I don't think Lisa's seriously was regarding the tax..... I think it was regarding the question.

What tax percentage was withheld? What tax rate is the client being taxed? Are they subject to the 10% early withdrawal penalty?

Lots of variables - only you can answer.

IRonMaN

Level 15

Oh boy. 😶

Slava Ukraini!

J

jeffmcpa2010

Level 10

Ever have

a client "paid taxes for state and federal on their WAGES with pulling out why are they still getting taxed more??

qbteachmt

Level 15

Let me try to help:

"If client paid taxes for State and Federal on IRA with pulling out"

None of your clients paid taxes either from payroll withholding or from this withholding. That's because Withholding is a Prepayment process. The IRS realizes this event might be part of the taxpayer's taxable events for the year, and the IRS wants there to be something Prepaid.

It's not until their tax forms are prepared that you, their Professional tax preparer, can tell them if they are Underpaid or Overpaid for Prepayments to the tax they owe. Because they might owe a Balance.

Does that help?

Don't yell at us; we're volunteers

C

christina85Author

Level 2

Yes thank you!

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