IRA

Forum|Forum|4 years ago
February 9, 2022
1 reply
1 view

2021 TurboTax: When I entered the VALUEs of our IRAs after entering all the other info, our TAX DUE went up over $1K. I verified that it was these entries and only these that changed the amount. Is this a glitch? The values should not have anything to do with taxes owed. (We are taking RMDs.)

DoninGA

Level 15

That would mean that you did not have enough federal income taxes withheld for the amounts of distributions you received from the IRA's. The taxable amounts from the IRA distributions are included on your tax return as ordinary income and taxed at your current tax rate.

If your Total tax liability is less than your Total tax payments you will have taxes owed.

LearningCurve46Author

Level 2

Thanks for the answer. Actually, had I not given up so quickly, I'd have found the answer. Like my ID, I am always on a steep learning curve doing taxes, although this is my 50th year doing them, 30th year using TT.