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Oh boy!

January 13th, 2018 at 12:46 pm

My DH got his W2 form last night. So I decided to input what I could for our taxes.

I don't have my w2 yet, so was going off my last 2017 statement (not sure how to figure out the retirement portion) and also gave best estimates on stock sales. That gave us taxes owed of $5.

Then I added in the $1,038 annuity from DH's late sister. All of a sudden taxes owed went to $638!! Um ... hopefully when I get the actual form it won't be this bad. But seriously, that's most of it!

I'm really regretting selling the non-tax exempt stock this year.

We may have been better off having put our IRA money in traditional rather than ROTH this year ... it looks like we won't get the tax saver's credit thanks to the annuity plus stock sale. UGH!

9 Responses to “Oh boy!”

  1. creditcardfree Says:

    The tax saver's credit does eventually go away as income goes up. Would the credit been more than the $1038 you received from the annuity? So much can change, don't panic until you have all the numbers. But it wouldn't hurt to have a plan on how to pay it by April 15.

  2. Carol Says:

    I thought inheritances weren't taxed??? But don't go by me!

  3. Frugaltexan75 Says:

    CFC - we’d just have to take the money back from the ef and fence fund. But that’d sure bite. We’d have gotten $400 from tax savers credit. So in essence we are paying back the whole annuity!!

    Carol, yeah it doesn’t make sense does it? But since it’s an annuity it’s taxed.

  4. creditcardfree Says:

    If you inherit IRAs from a spouse not taxed, if rolled over to their own IRA . But yes, tax deferred accounts distributed to a non spouse are taxable.

  5. frugaltexan75 Says:

    CCF - this would've been taxable even if it went to her spouse.

  6. Amber Says:

    I don't know much about taxes but hopefully the numbers will be in your favor once finalized

  7. creditcardfree Says:

    Ok, then that annuity wasn't an IRA. Smile I do hope it works out for you. Obviously you didn't plan to inherit money, so that is hard to plan for. Don't beat yourself up on the sale of your stock.

  8. rob62521 Says:

    Ooo, hope that isn't true. Maybe when you get all the real numbers it will look better. But like as CCF said, better plan now in case it comes to fruition.

  9. Frugaltexan75 Says:

    Thanks Amber.

    CCF - you’re right, I can’t beat myself up fo something I had no idea would happen.

    Rob I hope so. I’m hoping I put the annuity money in the wrong form or when the retirement money from my job is figured in it’ll change things.

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