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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11845
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 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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