I am filing married filing jointly.
Without adding any IRA Contributions, our federal tax due is $837. As soon as i add Regular Contribution for myself and my wife (Total of $12000, $6000 each), the tax liability increases to $$3200.
Since the IRA contribution is being made with after tax contribution, i don't expect the tax liability to increase.
One of the things that could be going wrong is that i am uploading the PDF 1099-R from our bank, which automatically populates Turbotax. Apparently, the bank has issued 1099-R suggesting that there has been a distribution of $6000 (Box 1) and all of $6000 is taxable (Box 2a). This doesn't appear to be reported correctly. I will reach out to them to get this corrected.
