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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11143
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am receiving royalties from an oil well. The well is in Oklahoma

This answer was rated:

I am receiving royalties from an oil well. The well is in Oklahoma and I live in Texas. When I received my share the total was $232,954.41, however, 35% ($81,534.04) Federal Taxes,
$12,812.49 Oklahoma taxes, $
9,543.50 Alternative Minimum tax was taken out leaving $129,064.37.

My question is do I have to pay federal income tax on the $129,064.37 when $81,534.04 federal tax has already been paid?

NPVAdvisor :

Hi,

NPVAdvisor :

TH Federal tax (and state) was withholding

NPVAdvisor :

So it really depends on the rest f your tax situation

NPVAdvisor :

If you are still in the 35% tax bracket, then (if all of the dollars were in the 35% bracket) then you won't owe an more

Customer:

I am retired 82 yrs old only on Social secuirty

NPVAdvisor :

OK let me see .. You file jointly? or single

Customer:

single

NPVAdvisor :

You'll probably get a refund

Customer:

ok thank you for your input!

NPVAdvisor :

For single filers, $183,251 - $398,350 is at the 33% bracket

NPVAdvisor :

This will (just for this year) make 80% of your social security taxable

Customer:

okay that makes sense

NPVAdvisor :

Glad to help

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.

NPVAdvisor :

HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question

Lane and 2 other Tax Specialists are ready to help you

Thanks so much Deborah,

Let me know if I can help further.



If you'd like to work with ME again just say "For Lane only" at the beginning of your next question.

Thanks Again,
Lane

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