Have a Tax Question? Ask a Tax Expert
Hi Ron. My name is ***** ***** I will be helping you today! It will take me just a few minutes to type a response to your question. Thanks for your patience!
You need not worry about being taxed twice. The $33,000 withheld is treated just like the withholding on your income during the year. When you go to file your tax return, the amount cashed out is treated as income for determining your taxable income and taxes owed. BUT, then you are credited with the $33,000 that was withheld against the tax owed. It's the same with how the amount withheld from your income during the year is credited against the tax owed to determine whether or not the net amount means you owe a bit more or are entitled to a refund.
Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!