my wife quit her job because health problems, a work comp case. she had 12,000 in profit sharing witch she opted to take but left the amount that she would have paid in tax, recently she was certified by the goverment as disabled dating before she wihdre her profit sharing,do we get that back?
2007-10-07 19:05:00 · 3 answers · asked by phillip r 1 in Business & Finance ➔ Taxes ➔ United States
File an ammended tax return. Call the IRS and they will walk you through the steps.
2007-10-07 19:12:22 · answer #1 · answered by ? 6 · 0⤊ 0⤋
the waiver will be for the ten percent penalty only, the remainder of the profit sharing account proceeds will be taxed at your normal rate.
You will need to file an amended return if all of this occurred in a year other than 2007.
A reminder: even though she left the taxable amount in the PS account, if you where to withdrawal that to pay taxes, you would incur a second taxable event
2007-10-11 13:38:16 · answer #2 · answered by greybeads 3 · 0⤊ 0⤋
She'll still owe the income tax on the profit sharing, at whatever your joint rate is if you file a joint return. She probably won't owe the additional 10% penalty for early withdrawal though. If they withheld too much, you'll get the extra back as a refund when you file your tax return.
2007-10-07 19:22:29 · answer #3 · answered by Judy 7 · 1⤊ 0⤋