Client is MFJ 65+. A QCD error took taxable up $2k(84,030to86,030). No other changes. FedTax up 540(8,826to9,366). All amounts in 22% bracket. Why not up 440?

Forum|Forum|3 years ago
March 2, 2023
3 replies
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What am I missing?

ProConnect Tax

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Best answer by ralphlnafziger

@ralphlnafziger wrote:

Ok - sentences forthcoming.

I discovered $2,000 of additional retirement income from a traditional IRA. That increase was the only line item that changed. Taxable income increased from $84,030 to $86,030. Federal tax per Intuit increased $540 and I think it should only increase $440 because both taxable amounts are in the 22% bracket. Why was the increase $540?.

So line 16 of the 1040 increased by that much? Or are you looking at something else that shows something increased by $540?

Yes, line 16.

But . . . . I just had an "ah ha moment". I believe the increased RMD may have changed the taxable amount of capital gains.

FYI - I only do a couple of simple returns for close friends.

Thanks for your reply - it got me thinking of more than brackets!!

sjrcpa

Level 15

Words.

Please respond in complete sentences and explain more.

The more I know the more I don’t know.

R

ralphlnafzigerAuthor

Level 2

Ok - sentences forthcoming.

I discovered $2,000 of additional retirement income from a traditional IRA. That increase was the only line item that changed. Taxable income increased from $84,030 to $86,030. Federal tax per Intuit increased $540 and I think it should only increase $440 because both taxable amounts are in the 22% bracket. Why was the increase $540?.

T

TaxGuyBill

Level 15

@ralphlnafziger wrote:

Ok - sentences forthcoming.

I discovered $2,000 of additional retirement income from a traditional IRA. That increase was the only line item that changed. Taxable income increased from $84,030 to $86,030. Federal tax per Intuit increased $540 and I think it should only increase $440 because both taxable amounts are in the 22% bracket. Why was the increase $540?.

So line 16 of the 1040 increased by that much? Or are you looking at something else that shows something increased by $540?