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frankenthaler
New Member

I had a one time income by cashing in an insurance policy. Should this amount be eliminated from my withholding calculation? If yes then how do I do it?

 
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PaulaM
Expert Alumni

I had a one time income by cashing in an insurance policy. Should this amount be eliminated from my withholding calculation? If yes then how do I do it?

Yes, you can adjust your withholding to omit the one time insurance payment from your projected 2018 income.

In TurboTax, W-4 and estimated taxes are adjusted in the Other Tax Situations section. 

  • Sign into your return and click the Take me to my return button.
  • Type 'w-4' in the search box, then select the 'jump to' link.

The first section will ask if you want to adjust your W-4 for 2018 then it will go the estimated taxes questions. If you don't normally pay estimated taxes and the onetime insurance payout is creating the forms, you can adjust in the section or disregard the printed forms (they are not mandatory).


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PaulaM
Expert Alumni

I had a one time income by cashing in an insurance policy. Should this amount be eliminated from my withholding calculation? If yes then how do I do it?

Yes, you can adjust your withholding to omit the one time insurance payment from your projected 2018 income.

In TurboTax, W-4 and estimated taxes are adjusted in the Other Tax Situations section. 

  • Sign into your return and click the Take me to my return button.
  • Type 'w-4' in the search box, then select the 'jump to' link.

The first section will ask if you want to adjust your W-4 for 2018 then it will go the estimated taxes questions. If you don't normally pay estimated taxes and the onetime insurance payout is creating the forms, you can adjust in the section or disregard the printed forms (they are not mandatory).


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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