My son in law paid taxes on the distribution due to his parents death - how come all of this becomes taxable income cause a $40k due to IRS
02382
2 Replies
ColeenD3
Expert Alumni
Feb 27, 2022 10:36:31 AM
You need to double-check the entries you made. There may have been withholding but that doesn't mean that it was sufficient to cover the tax liability. At the same time, that amount of tax due is probably incorrect.
susanus57
Returning Member
Feb 27, 2022 12:58:42 PM
TSP withheld 10% of the distribution amount. My son in law and daughter total taxable income due to the distribution is $402k and taxes due $90k and they have paid a total of almost $47k so I guess they do owe $42k. Does this make sense.