Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 11:21:15 PM

I was surprised to see my refund decrease substantially when put in the year end value of my IRAs. Is this correct?

0 1 485
1 Best answer
Level 15
Jun 5, 2019 11:21:17 PM

Yes, this is usually correct.  It suggests that TurboTax was not able to calculate the correct taxable amount of your traditional IRA distributions until you entered the year end balance, calculating a taxable amount that was too low by assuming a zero year-end balance until the year-end balance was entered.

1 Replies
Level 15
Jun 5, 2019 11:21:17 PM

Yes, this is usually correct.  It suggests that TurboTax was not able to calculate the correct taxable amount of your traditional IRA distributions until you entered the year end balance, calculating a taxable amount that was too low by assuming a zero year-end balance until the year-end balance was entered.