I completed all required inputs as to income recieved, i.e., dividends, capital gains, pensions, social security, and IRA distrubutions. Accordingly, I am due a refund. However, when I complete the IRA Info Worksheet I have a problem. It tellss me I owe a signifcant amount of taxes due! For example, If I indcate a balance of $0, refund is $1,392; a balance of $1,000 refund is $1,242. A balance of $10,000 reveals taxes due of $350. Now, it gets really interesting at a balance of $100,000 taxes due becomes $5,270 and a balance of $1,000,000 taxes due are now $7,528!
It was my understanding tax taxes were based upon the distributions from the IRA and NOT on the end of year balance in the account! Please enlighten me.
