My mom passed in 2014 and my sisters and I inherited/split the stocks when the estate was closed in 2016.
Filling in the blanks, I was asked if Federal was withheld and Turbo stated that as an "unusual" event.
Entering all the info was actually satisfying as I understood UNTIL I didn't!
It has raised my total gross income by THOUSANDS and is trying to give me a VERY LARGE Federal refund.
Although that would be great, it doesn't seem to make any sense.
I did NOT sell these stocks
Because it says QUANTITY SOLD, who sold them and more importantly, where or to whom was it sold?
Thank you in advance!!!
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A tax advisor is simply someone who knows enough about tax law to advise how that law applies to your particular situation. Examples include a certified public accountant (CPA), tax lawyer, or enrolled agent (EA).
In this case you received either stock and/or cash as a result of the merger. Section 302 of the tax code (see https://www.law.cornell.edu/uscode/text/26/302) is about whether or not that redemption of stock in exchange for new stock and/or cash is taxable as a sale or not.
This is complicated and I would suggest that you should seek the guidance of a CPA, EA, or tax lawyer to apply the law to your case.
You can always file an extension and you will have plenty of time to find someone before the extended October 15th filing deadline.
I would consult a tax advisor. this is too complicated for an Q&A forum.
One note, if you file for an extension of time to file your return, please note it is not an extension of time to pay taxes. Form 4868 is used to file for an extension for F1040.
You would need to estimate your total tax liability and your payments, and possibly need to send in money with the F4868 so that later, you wouldn't have a penalty for underpayment of tax.
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