This year's tax filing season pertaining to Traditional IRA's should be no different than last year's tax filing season (2022). I file single status.
In 2022, just say for example $30,000 was needed in withdrawals from the IRA. For simplicity, let's say that $30,000 was the adjusted gross income for 2022 and no adjustments could be made to that income to reduce the amount.
Then the first $10,275 of that income was taxed at 10% in the 2022 season. The taxable income from $10,276 to $41,775 (which comes to $19,725) would be taxed at the 12% rate.
So the total amount in taxes to be paid in 2022 would be $1,027.50 on the first $10,275, plus $2,367 on the $19,725 at the 12% rate which comes to the total of $3,394.5
I know how taxed distributions are calculated. I know what the tax is for the distributions in 2023
Would somebody please tell me I'm not losing my mind
I've never seen this happen before.
