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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13343
Experience:  15years with H & R Block. Divisional leader, Instructor
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I guess no more income averaging, not a fisherman but

Customer Question

I guess no more income averaging for retirees
JA: Thanks. Can you give me any more details about your issue?
Customer: not a fisherman but redeemed some 401 k and a in 2015 and did not withhold enough. kicked me way up agi from 159k to 355k owe 19.2k to feds an 6.7k to CA
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Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Hello

Income averaging is only allowed for specific income. The 401K distribution is not allowed for averaging, it is added in total to your income for the year of distribution.

That is a large increase in one year. If you find that paying the full tax is not possible you can request to make installment payments but interest will be added till the tax debt is paid.

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