IRA distribution

[alilash]

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,

[MinhT1]

The increase of $324 in your tax liability is not necessarily the direct consequence only of your inputting of the $1,200 income. The increase in your taxable income may have consequences also in certain income-based credits such as the Earned income credit.