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New Member
posted Mar 11, 2025 3:21:22 PM

I am considering withdrawing from an inherited IRA. I am on the lower end of my tax bracket. Is there a way to see what this will do to my 2025 taxes owed?

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3 Replies
Expert Alumni
Mar 11, 2025 3:32:36 PM

A good way to do that would be to amend your 2024 tax return by adding the distribution from your IRA. You will see what the change is to your tax and you can use that to predict the affect on your tax in the next year. Once you are done, you can cancel the amended return and your return will revert back to it's original state.

 

Another option would be to visit the Other Tax Situations tab in TurboTax and use the Form W-4 and Estimated Taxes routine under Other Tax Forms to see what your estimated taxes are when you add the additional income. They approximate the tax you will owe on the additional income, assuming you didn't get a large refund or owe a lot of taxes in the previous year.

Level 15
Mar 11, 2025 4:06:25 PM

according to the applicable rule for your inherited IRA, you may be required to take an RMD every year.

Do you know the rules?

 

@michaelsummers0830 

New Member
Mar 11, 2025 4:23:06 PM

Yes. I have to withdraw fully by year 10. 

I would only have to claim the lump sum as income.  I’m trying to get a rough estimate on what that will do to me in 2025.  I am on the lower end of my tax bracket but I don’t fully understand how taxes work.  Apparently I am in the 24% tax bracket but the amount I owed this year did not equate to 24% from my Gross adjusted income.