Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

If a person withdraws $20,000 from an investment account and…

Customer Question
If a person withdraws...

If a person withdraws $20,000 from an investment account and it's the only source of income, is there a tax to pay?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

That's my question

Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/30/2018
Tax Professional: Richard, Tax Attorney replied 4 months ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 57,234
Experience: 29 years of experience as a tax, real estate, and business attorney.
Verified

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Ask Your Own Tax Question
Tax Professional: Richard, Tax Attorney replied 4 months ago

Good afternoon. Is this a retirement account of some sort? And, is this simply a withdrawal of money the person put in the account? Or, were stocks sold to there was money to distribute? If stocks were sold, what was the purchase price of the stocks and when were they purchased? Thanks.

Ask Your Own Tax Question
Customer reply replied 4 months ago
stocks were sold
Tax Professional: Richard, Tax Attorney replied 4 months ago

What was the purchase price of the stock and when were they purchased? Also, what's your filing status...single, married filing jointly, head of household, married filing separately?

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 Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. 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

57,234 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
I was informed by my Investment Advisor that Schwab, the
I was informed by my Investment Advisor that Charles Schwab, the company they use to handling the buying and selling of stocks, etc. that they were informed by the State of Ct. that my tax rate for 20… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,610 satisfied customers
I'm studying 401k plans and I don't fully understand them. I
Hello I'm studying 401k plans and I don't fully understand them.I read somewhere that when you decide to withdraw money from a 401k account you pay the original income tax bracket on that amount and y… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
MY HUSBAND AND I ARE ON SOC SECURITY... HE WITHDREW 4,000 OUT
MY HUSBAND AND I ARE ON SOC SECURITY... HE WITHDREW 4,000 OUT OF IRA. TRYING TO FIND OUT WHETHER WE HAVE TO PAY TAX ON THE WITHDRAWAL.. THIS WAS ON 1099-R FORM.OUR TAXABLE AMOUNT FROM SOC SEC IS 18594… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
Tax question: Self-employed person contributed $10,740 to
Tax question: Self-employed person contributed $10,740 to his Sep for 2011. His profit is down & can only contribute $4,399. He withdrew $20,000 in 2011 to pay bills & withdrew $20,000 in 2012 to pay … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I divorced 3 years ago and received 1/2 of my exs 401k in
I divorced 3 years ago and received 1/2 of my ex's 401k in a business he no longer works for. No contributions have gone into it in years. It is in a vanguard account almost entirely invested in stock… read more
Jacy
Jacy
Bachelor's Degree
567 satisfied customers
I need to withdraw 20,000 from an IRA or a non qualified annuity.
I need to withdraw 20,000 from an IRA or a non qualified annuity. I am 60 years old. Which would I pay less income tax on?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
can I use a loss from a regular investment account against
can I use a loss from a regular investment account against money withdrawn from a IRA account.. I am 71 years old..… read more
Bizhelp
Bizhelp
Certified Public Accountant (CPA)
Bachelor's Degree
638 satisfied customers
My husband and I are over 62 and rolled over our 401ks to
My husband and I are over 62 and rolled over our 401k's to a returement account in a credit union. We are moving to another city because we are both disabled and want to be near our son. We would like… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I want to take money from company 401k and reinvest in property.
I want to take money from company 401k and reinvest in property. Is this posible without paying a penalty… read more
Marvin,EA
Marvin,EA
Enrolled Agent
Bachelor's Degree
1,605 satisfied customers
My wifes and my Social Security income is about $24K per year
My wife's and my Social Security income is about $24K per year and we need to reduce/eliminate taxes on this. Can you advise me on how to do this please?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Withdrew $20,000 from IRA to invest in an LLP; we have a passave
Withdrew $20,000 from IRA to invest in an LLP; we have a passave interest in the business. I understand we must pay taxes on the $20,000, however the business is just getting started and on our first … read more
Marvin,EA
Marvin,EA
Enrolled Agent
Bachelor's Degree
1,605 satisfied customers
I am retired with an IRA (over 60 years old). I want to buy
I am retired with an IRA (over 60 years old). I want to buy a house for $200K for my primary residence. I have a house to sell which will probably bring $150K It is currently my primary residence. How… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am planning my retirement (18 years hence) and trying to
I am planning my retirement (18 years hence) and trying to figure out what income level I need. Most programs determine that I need 85% of my current income. But when I look at my spending for the las… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am 72 years of age, get Soc Sec of $15,158 and will have
I am 72 years of age, get Soc Sec of $15,158 and will have income of under $20,000 from work. Will I have to pay taxes this (2008) year? I have had single one taxes taken from my pay since I began wor… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
Im 65, on Social Security, have about $90,000 in 401K savings,
I'm 65, on Social Security, have about $90,000 in 401K savings, and am thinking about taking about $60,000 of that money out to buy a house which would be my primary residence. My investment guy can't… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
I am in 15% tax bracket (age 68 - retired) and wish to pay
I am in 15% tax bracket (age 68 - retired) and wish to pay off my mortgage. The loan balance is $102K (12 years remaining). If I pay $50K this year I will reduce my interest by $29K, and have a year e… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My only income is my Social Security of $1900/month. I am
My only income is my Social Security of $1900/month. I am subject to mandatory withdrawals from my IRA as I am 70 1/2. My wife has no income and we file jointly. (1) If I withdraw a substantial portio… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
my 87 yr old grandpa lives with me for past 3 yrs. He ...
my 87 yr old grandpa lives with me for past 3 yrs. He collects ss and small pension. hasn''t met threshold to file income tax until this year when he took 42k withdrawl from an annuity he bought with … read more
Bill
Bill
Master's Degree
2,278 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