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Income tax question and nasty sex

Anonymous
Posted by Anonymous
  • 40 Replies
I'm about to file my taxes but I have a question I would like some advice on before I do.
At the end of December I inherited an ira from a deceased family member, I chose to cash it out and get the whole amount that day. I received $38k and paid no taxes on it.

Obviously I know that I do have to pay taxes on that amount but is there anyway I can avoid it this year? I'm buying a house and could use my tax return.
Posted by Anonymous on Feb. 15, 2017 at 10:49 AM
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Replies (1-10):
OwlNuggets
by HAIL NUGGY! on Feb. 15, 2017 at 10:50 AM

Idk, I didn't see the IRA part at first so you should maybe just contact an Estate lawyer and have them help you sort everything out.

sammichmaker
by soup sandwich on Feb. 15, 2017 at 10:51 AM
Im not an expert, but I doubt it.

You should have just paid the taxes when you cashed it out.
Anonymous
by Anonymous 2 on Feb. 15, 2017 at 10:51 AM
Pay the tax now.
Anonymous
by Anonymous 3 on Feb. 15, 2017 at 10:51 AM

not sure.

catchy title.

LoveAll3306
by Party Specialist on Feb. 15, 2017 at 10:51 AM
3 moms liked this
Wait! Where is the nasty sex?
OwlNuggets
by HAIL NUGGY! on Feb. 15, 2017 at 10:52 AM

(An estate planning lawyer could tell you, it might be worth the $$ for a one-time consult)

Anonymous
by Anonymous 4 on Feb. 15, 2017 at 10:56 AM


Quoting LoveAll3306: Wait! Where is the nasty sex?
bluebunnybabe
by kid crack dealer on Feb. 15, 2017 at 10:59 AM
1 mom liked this
I could be wrong but I think you're going to have to pay taxes plus the 10% early withdrawal penalty. The only way I'm aware of to lower the tax burden is to put some in a traditional IRA before April 15th and designate it as a contribution for the 2016 tax year.
bluebunnybabe
by kid crack dealer on Feb. 15, 2017 at 11:00 AM
1 mom liked this
It's because it was in an IRA. If it had been just regular savings of some type, she would have been fine.

Quoting OwlNuggets:

I didn't think you had to pay taxes on an inheritance unless it was 60k or more.

You might verify this.

eta: I just inherited a similar amount and am wondering myself.

Anonymous
by Anonymous 1 - Original Poster on Feb. 15, 2017 at 11:01 AM
I thought the early withdrawal penalty didn't apply if the deceased person was over a certain age? He was 80 years old.

Quoting bluebunnybabe: I could be wrong but I think you're going to have to pay taxes plus the 10% early withdrawal penalty. The only way I'm aware of to lower the tax burden is to put some in a traditional IRA before April 15th and designate it as a contribution for the 2016 tax year.
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