Why does my pension withdrawl count as taxable income?

amberandclark

New member
I was part of a layoff from a company in 2008. In 2009 I cashed out my pension and paid the taxes on it. But when they sent me the 1099-R it shows the full amount as taxable income and its screwing up my tax return. Why should I pay more taxes if I already paid them???
 
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