Janitor Bob Posted February 17, 2011 Report Share Posted February 17, 2011 Client, age 40, withdrew all of the money ($45,000) from his IRA.....The entire amount is taxable and additional penalty. Client now owes IRS $15,000 Of course, he did not save any of the $45,000 to put towards the amount due....he used the funds to pay down credit card debt...and to by a new Pontiac G-6 Client is in shock as he was expecting the same $1,700 refund that he got last year....Wants me to fix the problem......I can't fix stupid. 1 Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 17, 2011 Report Share Posted February 17, 2011 Was there not any withholding taken out? Quote Link to comment Share on other sites More sharing options...
fredazcpa Posted February 17, 2011 Report Share Posted February 17, 2011 another case of taxpayer thinking that the IRA is a savings accoount, and also not talking to his/her tax perparer, and not listening to the person at the 1800 no help explain about the taxes and the 10% and like you said, you can not fix stupid, time to pay up Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 17, 2011 Report Share Posted February 17, 2011 Sell the car. Pay the tax. You can't fix stupid... Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 17, 2011 Author Report Share Posted February 17, 2011 Was there not any withholding taken out? All Taxable...no Fed or Ohio withholding....Client also lives in an area with a school tax.....so he owes additiona $1,900 to Ohio and $700 to school Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 17, 2011 Author Report Share Posted February 17, 2011 Sell the car. Pay the tax. You can't fix stupid... EXACTLY what I was thinking Jack! Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 17, 2011 Report Share Posted February 17, 2011 I dealt with my first one of this season yesterday: "Yeah, but they held the tax out to cover the penalty, so you shouldn't put it on there." Aaugh! It finally dawned on me yesterday that I will never be able to get through to the people that withdraw retirement early. Cause there's a reason they're withdrawing their retirement early, you know? I feel alot better now that I have completely given up on that one. 1 Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 17, 2011 Report Share Posted February 17, 2011 I don't know why the White House wants to raise taxes while taxpayers are forced to take actions such as this that pays more taxes. Government is to big and expensive! Enough! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.