Why do I owe money when I Increased Traditional IRA contributions in ammended Tax Return?
I only changed one thing in my amended tax return: increased Traditional IRA contributions, and now it is saying I am both getting a refund and owing money.
To give a broad example, rather than going into specifics, I owed over 1000 when I submitted my tax return, which i paid, and then when I contributed over 3000 to my traditional IRA, and amended, turbotax quoted me saying I would have to pay over 500, and I would simultaneously get a refund of a little over 500. I looked at the tax document TurboTax prepared and it wrote an amount to pay over 500, when it was actually to pay -500. And the new refund is not being listed on the turbotax dashboard - will that be posted at some point?
Does that make sense to be given a refund and owing, after owing before?
In another sense, pre-tax contributions are supposed to be pre-tax, so that you would later. I'm confused why I would have to pay more now, if I will be taxed on that later too given it was pre-tax. I used turbotax premium which was not an option for product to select so i chose deluxe for purpose of this.
