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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13614
Experience:  15years with H & R Block. Divisional leader, Instructor
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My husband and I make a combined annual income of $100,000.

Customer Question

My husband and I make a combined annual income of $100,000. A few months ago I cashed in a $208,000 IRA. approx $20,000 tax was withheld for federal and about $140 for NYS ( I've got to check on this). We bought a house in NC for our retirement for $122,500. The house needs a roof and electrical work, which we have contracted to be donw. We called out tax accountant to get an idea of the taxes we would owe and she told us that it will be $33,000 for fed tax and $12,000 for state tax. I am 61 years old ( social worker, working full time. My husband is 54, working right now( contractor). we don't have the money to give them. What are our options ? Can we pay it back on time?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello,

The additional tax that the IRA distribution is going to cause you can be paid by Installment.

If you're financially unable to pay your tax debt immediately, You can make monthly payments through an installment agreement.

You may be eligible to apply for an online payment agreement

You will set this up when you file.

Another option would be to start making estimated tax payments. You can use Form 1040-ES, Estimated Tax for Individuals (PDF), to figure and pay your estimated tax.

Expert:  Robin D. replied 1 year ago.

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