Tax Law (Questions About Taxes)/TAXES ON 1099R

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Question
John Hi, I need your help, my mom who is elderly closed out a 1099R account. The account is over       100 thousand and she lives In NY. She received a 2014 statement for tax purposes.  Can you please tell me the rate this is taxed by Federal and taxed.  Can the tax  amount be spread out over future years.  Is there anything she can reduce the pay out of taxes. We appreciate your help.  Thank you Ken

Answer
Ken,

Thanks for your question.

Unfortunately, this is a closed fact situation, meaning that the opportunity for tax savings has passed.  You should have consulted with a tax advisor prior to making the withdrawal.

The tax is due for the year the funds were withdrawn and cannot be spread out. It will be taxed at her marginal rate which will be between 10 and 39.6%. Different portions will be taxed at different rates as the taxable amount increases.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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