Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

A Taxpayer filed for divorce & as part of the settlement was…

Customer Question
A Taxpayer filed for...

A Taxpayer filed for divorce & as part of the settlement was granted a IRA account. She subsequently used the account to make down payment on a house for herself & the children. Does she owe any taxes on the amount she used for the house?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

She is under 59 and in her earley 40s.

Submitted: 2 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/29/2018
Tax Professional: Lev, Tax Advisor replied 2 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,984
Experience: Taxes, Immigration, Labor Relations
Verified

Does she owe any taxes on the amount she used for the house?

There is no tax liability on the "use" of the money...

But distribution from IRA account indeed is taxable.

There must be reporting form 1099R - and box 2a should provide with the taxable amount.

That taxable distribution is added to other taxable income.

Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty.

There are exceptions to the 10 percent penalty - specifically qualified first-time homebuyers, may exclude up to $10,000 from the penalty.

Let me know if you need any help with reporting.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,984
32,984 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
What determines tax liability for US citizens in Germany? If
What determines tax liability for US citizens in Germany? If I moved to Berlin in March 2017 under a Schengen visa and didn't finally get my work permit until June, do I have to pay taxes for the peri… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
What is my capital gains tax liability on commercial
what is my capital gains tax liability on commercial property inherited in 1991. assessed value at the time of inheritance was $171,000. Selling price would be $850,000; $200,000 at time of sale - bal… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
VA form asks for adjusted gross income (disability form). We
VA form asks for adjusted gross income (disability form). We file joint; can we separate his income from mine for the form? How? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
If I report the distribution listed on K1 line 19A, the
If I report the distribution listed on K1 line 19A, the software adds the difference between net rental income and the amount distributed and taxes the difference. So, do I need to enter the amount on… read more
Lev
Lev
Tax Advisor
32,984 satisfied customers
Is there a tax liability on coins that were being stored by
Is there a tax liability on coins that were being stored by an investment company but I now physically possess them? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Where do I report capital gains distributions in Turbo Tax?
Where do I report capital gains distributions in Turbo Tax? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
My only taxable income is $2287.10 from IRA distribution. I
My only taxable income is $2287.10 from IRA distribution. I am rated 100% VA disabled. My social security and VA pension are non-taxable. I have no other reportable income. How do I determine if I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Is a IRA distribution in a divorce settlement taxable to the
Is a IRA distribution in a divorce settlement taxable to the spouse receiving the distribution?… read more
abci168
abci168
Principal
27 satisfied customers
I have 2017 Disaster Retirement Plan Distribution from IRA
I have 2017 Disaster Retirement Plan Distribution from IRA in the amount of $22,769.00. Due to Tax relief for victims of disaster, I chose to pay 1/3 of the amount ($7589.00) and I got taxed on that a… read more
Lev
Lev
Tax Advisor
32,984 satisfied customers
Form 1099r shows a gross distribution of $125,807.00 with a
Form 1099r shows a gross distribution of $125,807.00 with a taxable amount of $20230.87...tax with held of 2125.00. Line 5 shows $105,576.35. Using our H&R block software, the $105,576.35 was added as… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
Should a missed RMD be reported on the tax form of the year
Should a missed RMD be reported on the tax form of the year it should have been taa should a missed RMD be reported in the tax year it should have been taken … read more
Lev
Lev
Tax Advisor
32,984 satisfied customers
On what lines do you report the final distribution of the
On what lines do you report the final distribution of the principal, no income, (K-1) as a trust beneficiary?… read more
Lev
Lev
Tax Advisor
32,984 satisfied customers
Filing online. On tax form it asks for taxable amount (2b)
Filing online. On tax form it asks for taxable amount (2b) on a distribution from an IRA rollover account Form 1099-R. There is no amount given, just an X in a box and saying taxable amount not determ… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Does the additional tax of 10% on early distributions (Form
Does the additional tax of 10% on early distributions (Form 5329 Part I) apply to an excess non-deductible IRA contribution received before taxpayer is 59 ½. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
I'm retired, about 24,000, adjusted gross income for 2017. I
I'm retired, about 24,000, adjusted gross income for 2017. I am going to sell my owner occupied duplex that I've had for 29 years. I rented half for a few years, but haven't rented it in over 10 years… read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
My gross distribution is 74K+. My taxable amount is 24K+
My gross distribution is 74K+. My taxable amount is 24K+ because of a 62 percent disability rating when I retired. My amount due is over 8,000. Why. How can I not be penalized for being disabled? … read more
Lev
Lev
Tax Advisor
32,984 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x