I understand all of that. What I don't understand is how before entering the 1099-R I was showing a refund. After entering it, I now owe taxes. It's a $10,070 difference between the refund I was expecting and the taxes I now owe. That seems very extreme. At most, I would have expected the refund to lessen - not entirely disappear.
As an inheritance, this just doesn't feel right.
