I use Turbo Tax near the end of the year to estimate my likely tax liability so that I can decide whether to take any voluntary IRA distributions (I'm retired, older than 59-1/2, and younger than 70-1/2).
For example, if my normal income and capital gains are so low that I will have no tax liability, I might decide to take some money out of my IRA up to the point where I just begin to owe tax. I would normally use the What-If feature in TT 2020 with the 2021 tax rate flag checked to do this.
But 2021 may be a bit complicated.
Assuming Biden gets his tax increases through by the end of 2021, I have read that some of them are likely to be retroactive to April 2021 (to avoid nasty runs on the stock market etc.). On the other hand, Biden may not get any of his tax increases through this year. But time is getting short and we may not know one way or the other until just before the end of year, when it might be too late to organize an IRA withdrawal.
Is TurboTax building in any contingency calculations into TT 2020's capability to estimate 2021 taxes?
If not, can we assume Turbo Tax 2021 will at least contain the user interface and calculation to handle the split between what is subject to retroactive taxes and not?
Thanks!
