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beejhappy
April 10, 2025
Question

I made a mistake in my first question. I withdrew $20000.00 to satisfy RMD. I used $2k for the taxes.

  • April 10, 2025
  • 2 replies
  • 0 views
Why does Turbo Tax say I am short by xx amount?\

2 replies

AmyC
AmyC
Employee
April 10, 2025

You had the issuer take out 10% to help cover your tax liability on a $20k distribution. The lowest possible tax bracket you could be in is 12% and yours is probably higher. See : Federal income tax rates and brackets - IRS

You should owe the additional amount not taken.

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VolvoGirl
VolvoGirl
Employee
April 10, 2025

Or does Turbo Tax think you didn’t take the full RMD amount and giving you an excess accumulation penalty?  That’s been happening a lot.  

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