I have the same issue. IRS rules state that taxes are required in the year of distribution for the cost basis, regardless of any withdrawals were taken. I'm assuming withdrawals greater than the cost basis amount are then taxed at the appropriate capital gains rate. I'm using Turbo Tax Premium, but don't think the calculations are correct. Is Turbo Tax not able to calculate appropriate taxes for NUA distributions?
I was also playing with different scenarios for this year's estimated taxes. I entered income of $50K with capital gains, from the distribution taken last year, of $20K. We are married and filing jointly. According to the tables the rate on capital gains for 2019 is 0% on income less than $78,750. Why did Turbo Tax show a tax increase when the capital gains were entered?
