topic Re: The 1099-r causes my refund amount to significantly decrease. I removed the Federal Income Tax Withheld to see what it would do and the refund goes up. Any idea why? in Retirement tax questions

The 1099-r causes my refund amount to significantly decrease. I removed the Federal Income Tax Withheld to see what it would do and the refund goes up. Any idea why?

angela-wells — Wed, 12 Feb 2020 03:46:45 GMT

Re: The 1099-r causes my refund amount to significantly decrease. I removed the Federal Income Tax Withheld to see what it would do and the refund goes up. Any idea why?

NCperson — Wed, 12 Feb 2020 11:24:35 GMT

if your marginal tax bracket is higher than what was withheld when you took the taxable distribution, you owe more now.

let's say, upon distribution, the administrator withheld 10% of the money for federal tax. But you find yourself in the 22% tax bracket. that would mean you owe more tax than was withheld.

Re: The 1099-r causes my refund amount to significantly decrease. I removed the Federal Income Tax Withheld to see what it would do and the refund goes up. Any idea why?

SteamTrain — Wed, 12 Feb 2020 14:01:41 GMT

Or..maybe you are mis-reading the "Refund" monitor

...and it's really a "Balance Due"...and the Balance Due amount increased.