Tax question

[MacFromOK]

Not all accountants are created equal either...

We had used one lady for a couple years, and wound up owing around $5k in taxes that we should not have. Went to another tax guy (recommended by a friend with a business), and that guy got the $5k back.

Never hurts to get a second opinion...

Luck.

 

[SlugSlinger]

I’m hoping as some have said that we can split it up over three years and add the $22,666 to earned income for each of the next three years. Hopefully that will save us from having to pay a large amount. Thanks for y’all’s help. I called the tax lady and she wasn’t there but I left a message.

Let us know what she says. I am not a tax accountant, but I do have masters degrees in accounting and finance.

 

[Fredkrueger100]

I have an appointment Thursday. Hopefully it goes good. I have had enough of bad things happening.

 

[DavidMcmillan]

Best wishes to you. You are right, this doesn't seem to have been a good year for you. Hoping 2021 will be much better for you.

 

[tRidiot]

I remember when looking into pulling money from the 401k when things were bad, yes, you CAN spread those tax payments out. You can ALSO contribute money back INTO the IRA/401k to replace what you took out (not sure if you can do so with a 401k if you have left that company). So let's say for instance you got a new job with HIGHER pay, or you made significant changes in your lifestyle to allow you to replace that entire $68k on top of your ongoing contributions, you can reduce or eliminate the tax on that early withdrawal by replacing it over the same period of time. I THINK.

Anyways, something to think about - anything extra you can possibly afford to shovel into your (new) 401k or IRA will offset the taxes on your early withdrawal. Heck, you might be better off taking out a second mortgage to put that money back into your retirement fund - if you can get a 3-5% mortgage, you save the 30% or so in the tax hit, and your money can (potentially) make more than the loan interest per year being back in the market - it's an option, right?

Bottom line - talk to a pro.