https://ttlc.intuit.com/community/retirement/discussion/ira-distribution/01/1087517#M84623 <P>I got a the minimum distribution from an inherited IRA of $1,200.&nbsp; Eventhough we are in the 22% bracket, this is being taxed at 27%.&nbsp; Not sure why that is.&nbsp; Before adding this distribution we were due to receive $220 return, after inputting this distribution we owe $104 in taxes.</P><P>This $1,200 does not put us in a higher bracket.</P><P>Why is this being taxed at a higher rate?</P><P>Thank you,</P> Wed, 05 Feb 2020 02:12:09 GMT alilash 2020-02-05T02:12:09Z https://ttlc.intuit.com/community/retirement/discussion/ira-distribution/01/1087517#M84623 <P>I got a the minimum distribution from an inherited IRA of $1,200.&nbsp; Eventhough we are in the 22% bracket, this is being taxed at 27%.&nbsp; Not sure why that is.&nbsp; Before adding this distribution we were due to receive $220 return, after inputting this distribution we owe $104 in taxes.</P><P>This $1,200 does not put us in a higher bracket.</P><P>Why is this being taxed at a higher rate?</P><P>Thank you,</P> Wed, 05 Feb 2020 02:12:09 GMT https://ttlc.intuit.com/community/retirement/discussion/ira-distribution/01/1087517#M84623 alilash 2020-02-05T02:12:09Z https://ttlc.intuit.com/community/retirement/discussion/re-ira-distribution/01/1087691#M84631 <P>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.</P> Wed, 05 Feb 2020 02:34:48 GMT https://ttlc.intuit.com/community/retirement/discussion/re-ira-distribution/01/1087691#M84631 MinhT1 2020-02-05T02:34:48Z