Myself and 3 other of my siblings recently inherited 160,000.00 in 2012. These funds came from my mothers IRA which listed her trust as the beneficary. Therefore the taxes (totalling roughly 58,000.00) were withheld before dispersement to the 4 beneficiarys. On our K-1 forms for 2012 it shows 40,000.00 each as income and 14,000.00 each as taxes deducted. MY question cover my ability to recover that 14,000,00 and if I can do so. My situation. I'm retired and each tax year I show very little income and about 40,000.00 in deductions. Now that large credit just drifts away as I paid very little taxes to offset it. If I do my taxes tomorrow- does the 40,000.00 count as income and lets say I have deductions of 40,000.00 --do I get the 14,000.00 in taxes withheld back to me? If I haven't done a good job of explaining it, please advise. Thank you Jim XXXXXXX
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.