ANSWERS: 1
-
Good question. If your taxable income including the IRA distribution is high enough that you must pay tax (considering using the worksheet to reduce the amount of your social security that must be taxed) contributions to charity, interest on your home, excessive medical care costs and like deductions can be used to reduce your tax liability. However, this money was put into the IRA before being taxed and now is the time the gov't is going to tax it if your income is high enough for you to pay tax. An IRA is tax free until you draw it out and then it is taxed.
Copyright 2023, Wired Ivy, LLC

by 