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I have recieved a large lump sum of cash, and I was wondering

Customer Question
what would happen to it...
I have recieved a large lump sum of cash, and I was wondering what would happen to it. Will the taxes be taken out when I deposit it in my account immediately or will I have untill April 15th to pay the taxes? I was curious because it is over 10,000.00.
Submitted: 9 years ago.Category: Tax
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Answered in 1 minute by:
10/2/2008
Tax Professional: Merlo, Accountant replied 9 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello wallace,

 

Can you tell me the source of the funds?

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Customer reply replied 9 years ago
I sold a high priced car for a friend of mine and i made a profit of 11,000.00
Tax Professional: Merlo, Accountant replied 9 years ago

Hello again wallace,

 

If that is the case, then I have to assume that no taxes have been taken out at this point. If you simply plan to deposit this money into your bank account, the bank will certainly not withhold any taxes.

 

However, you may want to consider yourself making an estimated tax payment to the IRS just so that at the end of the year you do not end up being too short on the tax paid in, and having to pay not only your tax, but also some interest.

 

If you would like to make an estimated tax payment to the IRS you can do so by filling out Form 1040-ES and submitting it to the IRS with your estimated tax payment. You would then receive credit for that payment when you do your tax returns at the end of the year. But the bank itself will not withhold any tax on the money you deposit.

If this has been helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you.

 

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Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
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Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

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