tnnnn
New Member

Why is tax liability $1500 higher on a cashed out IRA belonging to husband than if it belonged to me?

Husband cashed out an IRA and we owe taxes. I mistakenly ticked my name as the owner, and when I went to correct it and tick my husband’s name the tax liability increased $1500! We are married filing jointly. Why would the tax liability increase depending on who’s account it was if we are married filing jointly?