Thanks for your post. We actually discovered the problem, and it was not with the TT software. When entering the inherited IRA withdraw, we did in fact experience a 10% extra amount imposed in tax to our bottom line tax owed. But what actually happened is that the distribution put our income over the income limitations of the educational tax credits…..and the amount of the credits were basically equal to the same dollar amount of 10% of the IRA withdraw. So I was confused as to the source of that extra tax, but it was actually due to the educational tax credit reduction. That was my mistake.
