I inherited a stock (8/6/14) which sold prior to the close of the estate (9/9/16).
Although Federal did withhold on this sale, my refund is larger than the withholding.
I can't find anything saying I am entitled to a refund on the sale of a stock.
Only that a sale will impose a tax.
My question is~Why am I receiving a Federal Refund?
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"My question is~Why am I receiving a Federal Refund?"
First off, you really can't look at any one transaction or any one amount withheld and somehow associate that with your refund. Your refund is calculated as:
(Tax on all your taxable income) - (taxes paid from all sources)
Even absent this particular stock sale you might have been due a refund anyway if you had more taxes withheld from your paycheck then was necessary.
Looking at the 1099-B that you posted it's very clear that the taxes withheld here were much more than was necessary. You reported a long term capital gain of $903.25 and that gain might have been taxed at a rate as low as 0%, (if you're in the bottom two income tax brackets), or perhaps at 15%, (if you're out of the bottom two tax brackets), but in any case the amount withheld was well in excess what was necessary.
If you add together the refund that you might have been due absent this transaction and then the refund that clearly is generated by this transaction, then you easily could have a refund that's more than the amount withheld on the 1099-B.
Tom Young
"My question is~Why am I receiving a Federal Refund?"
First off, you really can't look at any one transaction or any one amount withheld and somehow associate that with your refund. Your refund is calculated as:
(Tax on all your taxable income) - (taxes paid from all sources)
Even absent this particular stock sale you might have been due a refund anyway if you had more taxes withheld from your paycheck then was necessary.
Looking at the 1099-B that you posted it's very clear that the taxes withheld here were much more than was necessary. You reported a long term capital gain of $903.25 and that gain might have been taxed at a rate as low as 0%, (if you're in the bottom two income tax brackets), or perhaps at 15%, (if you're out of the bottom two tax brackets), but in any case the amount withheld was well in excess what was necessary.
If you add together the refund that you might have been due absent this transaction and then the refund that clearly is generated by this transaction, then you easily could have a refund that's more than the amount withheld on the 1099-B.
Tom Young
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