Question

My refund of $4M went to tax due of $10M after I entered an RMD on an Inherited IRA of $14M. It is taking the entire amount as tax due, not ~$6M of tax on the $14M?

Forum|Forum|6 years ago
March 4, 2020
2 replies
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TurboTax Premier Online

Employee

What? If you are dealing with refunds and tax due amounts in the MILLIONS what are you doing using do-it yourself tax software?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

C

c669226Author

I guess they don’t teach roman numerals in school anymore. M is one thousand and the number of characters was limited in the post.

D

DavidD66

The "refund/tax due" amount changes frequently as items are entered. Sometimes it takes getting through an entire section before anything in that section updates the amount. I recommend not paying attention to it until you are substantially finished with your return and ready to perform checks for filing.

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SteamTrain

Employee

Still, the change "seems" out of bounds. Even if you are getting SS payments, and the increased income affects how much of your SS is taxed....it seems a bit much. So..

1) With something like this, you should edit that particular 1099-R to make sure you didn't mis-key some value in one of the boxes, and then go thru the followup questions again.

still wrong?

2) Delete that 1099-R entirely, then print out a copy of your form 1040 without it, then put it back in and print out a new copy....compare the two forms line-by-line to see what else has changed. Maybe you lost some other tax credit because your income was too high..

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*