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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Myself and 3 other of my siblings recently inherited 160,000.00

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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

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using I'm sorry to hear about your loss. The $14,000 that has been withheld is an estimate of the taxes that would be due on the amount at the end of the year. If you have $40,000 of deductions to go against the $40,000 you received, the yes - you would get the $14,000 back when you file your tax return. So, if you have deductions to offset the income those will be taken into consideration. You aren't necessarily out the $14,000 - it was just an estimate of your withholding.

I hope this helps. Please let me know if you need anything additional. Thanks again for using and have a great day.

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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.

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Thank you so much for the positive rating and the bonus. Please come back and see me next time you have a question. It was a pleasure working with you today. Have a great afternoon.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer

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