Estimated Taxes on windfall
If I come into an unexpected amount of money, how do I account for this with the IRS?
Terry Says
It depends on how you “come into” the money!
If it is an inheritance, there is no tax. If you win the lotto, they will likely withhold taxes to simplify your problem. If it is a “gift” from someone else, they might owe gift taxes — but not you! If your boss gives you a bonus, likely the company will withhold taxes. If not, consult your tax advisor to make quarterly estimated tax payments.
If you’d like to write back with more details, maybe I could be more helpful in pointing you in the right direction.
