I got a the minimum distribution from an inherited IRA of $1,200. Eventhough we are in the 22% bracket, this is being taxed at 27%. Not sure why that is. Before adding this distribution we were due to receive $220 return, after inputting this distribution we owe $104 in taxes.
This $1,200 does not put us in a higher bracket.
Why is this being taxed at a higher rate?
Thank you,
