That is just to calculate the amount of savers credit you qualify for. It is not making the tax higher, it is reducing the amount of the credit that lowers the tax. When you enter the distribution then there is less credit to reduce the tax.
Past years distributions will reduce the credit. See the 8880 form instructions:
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/f8880.pdf">https://www.irs.gov/pub/irs-pdf/f8880.pdf</a>
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
