"Without knowing the final consequence we move money from a money market account to a checking account. Is there anything we can do to not pay so much tax on that money?"

[RichardG]

Was the money market account in an IRA?

[Mousey2]

yes, it was a traditional money market IRA,

[Mousey2]

Not good it was withdrawn on 8/25.16. So I guess we have to pay the taxes.

[Mousey2]

I qualify for this option.
Medical expenses that are more than 10% of your adjusted gross income (AGI) if you are under 65 years, or 7.5% of your AGI if you are age 65 or older at the end of the tax year.

[RichardG · Accepted solution]

If you withdrew the funds within the last 60 days, you can rollover the money to another (or even the same) IRA.  Please follow this link for more information on IRA rollovers.  https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-...

If this was a premature distribution, there are several exceptions to the 10% penalty.  TurboTax will ask if any of the exceptions apply during the interview.  The exceptions are listed below

https://ttlc.intuit.com/replies/3301632

[Mousey2]

This might apply to me. Medical expenses that are more than 10% of your adjusted gross income (AGI) if you are under 65 years, or 7.5% of your AGI if you are age 65 or older at the end of the tax year;