How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16579
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

Myself and 3 other of my siblings recently inherited 160,000.00

This answer was rated:

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.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site. This answer is not to be construed as financial or legal advice. Please contact a local tax professional, and do not rely on this assessment to avoid penalties or to make financial decisions. This is for informational purposes only**

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.

Megan C and other Tax Specialists are ready to help you
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