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I guess no more income averaging, not a fisherman but

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I guess no more...

I guess no more income averaging for retirees

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

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

Submitted: 2 years ago.Category: Tax
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Answered in 17 minutes by:
2/23/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,050
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

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.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

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