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Ask Matthew Breecher Your Own Question
Matthew Breecher
Matthew Breecher, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 286
Experience:  Director
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I am a senior citizen..I cashed in a retirement account for

Customer Question

Hi..I am a senior citizen..I cashed in a retirement account for 50,000 and it was taxable..the reason is due to a hardship I had to move in with my daughter..26,000 was used to update her house with a bathroom and serve as down payment on larger home..is any portion of this deductible..I do my own taxes and ended up with 14,500 tax bill not sure how to pay my only income now is SS and small Pension
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: On my return I did claim the 7,700 I paid to a college for Grandson...the balance was used to pay off debts and health expenses
Submitted: 4 months ago.
Category: Tax
Expert:  Matthew Breecher replied 4 months ago.

Hello, I would like to assist with your questions. I would have to say, a nearly $15,000 tax liability on only $50,000 seems high. Did you have other income?

Customer: replied 4 months ago.
around 25000
Expert:  Matthew Breecher replied 4 months ago.

First, I am a little confused. Is your grandson your dependent? If not, you cannot claim his college tuition even if you paid for it.

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As for the other expenses, if they were necessary as part of a medical need, you could make an argument for such improvements as medical expenses; provided you have a qualifying disability.

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Otherwise, all expenses you have mentioned are not expenses; rather, they are gifts to family members.

Expert:  Matthew Breecher replied 4 months ago.

I hope I answered your question with sufficient detail, accuracy, and completeness based on the facts communicated. I would be happy to expand my answer should you need clarification, before you rate my response. If no additional information is needed, please rate my response, based on thoroughness and accuracy, rather than any good or bad news/content. We (the experts) are only compensated when an answer is accepted and rated with at least 3 stars; but my goal is your complete satisfaction and a 5 star rating. I appreciate your prompt response. Sincerely, ***** ***** Breecher, CPA.

Expert:  Matthew Breecher replied 4 months ago.

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