@Chris1976 wrote:
Sorry but I am livid! We took out money due to Covid and spread it over three years on our taxes. Last year when we filed, we got a refund. This year it says we owe. WTF? The income amount from last year and this years is basically the same including the 1/3. What did I do wrong? How many times do they get to tax us on OUR money? Can someone explain why I would owe this year but not the first year I filed. TIA. Should I talk to a tax professional?
If the IRA distribution that you receive in 2020 and chose to split it for three years was pre-taxed, then Your 2020 return was only taxed for one third of your distribution and the remaining tax on the two third of it that was withheld must have refunded to you when you filed in 2021... Now for 2021 you owe the tax on the second one third of your 2020 distribution...
