I received 95K from a 401k that my ex-wife had. I agreed to keep the house which was underwater and use this money to refinance it. If it were not for the house I would of rolled it over into an IRA. After the 20 percent tax I received 75k. Will this be added to my income for next years taxes? And will I be in that tax bracket? Which could in turn increase my tax liability alot more than I can afford on my income of 45k per year.
You need to consult a CPA on this tax issue.
This AVVO Answer is provided for general educational purposes only. By using or participating in this site you agree and understand that there is no attorney client relationship between you and the attorney responding, and no attorney-client confidentiality. The law changes frequently, and varies from jurisdiction to jurisdiction. The information provided in this Answer is general in nature and may not apply to the factual circumstances described in your question. The applicable law and the appropriate answer may be different in the State or States where the relevant facts occurred. For a definitive answer you should seek legal advice from an attorney who (1) is licensed to practice in the state which has jurisdiction; (2) has experience in the area of law you are asking about, and (3) has been retained as your attorney for representation or consultation. Your question and the attorney’s answer may be used for promotional or educational purposes