Promissory note from Employee Profit Sharing

[Deleted]

My husband retired in 2009 and received a $50,000 payout from the profit sharing plan. They took out 20% in taxes, and we honestly didn't know what to do with it. So we claimed it as ordinary income and paid the difference. He had no paperwork other than the distribution. We had only gotten married in June in that year.

Evidently there was more. We got a distribution in April for $2500. About $2300 was the distribution and the other $200 was interest. No taxes were taken out this time.

I am trying to use TurboTax and don't know what to do with it. We have no claim, just the letter accompanying the distribution that designated what was the distribution and what was the interest. I told my husband that maybe a form will still come; they don't have to send one until Jan. 31.

But this all beyond my experience level. We could go to a professional, but what can he/she do without the accompanying paperwork? I figured last year that the worst that we were doing was that we were overpaying. That was the excuse I prepared for the audit. Lol. Everything else we do is squeaky clean to even claiming the $23 I got as a Mystery Shopper.

If we don't get a form, does some professional recommend that we do it again . . . call it ordinary income (MISC?) and just pay taxes on it? It is his only income other than SS. I am a teacher, though, who did earn $52,000 last year after deferring some income. Trust me that the $2500's impact will be a lot less than that $50,000 last year even though no taxes were taken out.

HELP? (Yes, I am screaming. Lol.)

[Deleted]

Um, we have no claim should read we have no form.

[taxref]

I would recommend that you wait until you receive a 1099-R for the distribution before you prepare your taxes.

One important point you may have missed is that all of the distribution may not be taxable. Listing all of the distribution as income may result in an overpayment of taxes. Any non-taxable portions should be listed on a 1099-R.

I would recommend that you also check your 2009 distribution for that information. An amended return may be in order.

[nancy65]

He should have received a 1099-R for 2009 and he should get one for 2010 also.

He needs to contact the Pension/Profit Sharing plan and request another copy for 2009. Make sure they have the correct address to send out the 2010 form.

You'd think that if they can send a check, they could also send the forms to the same address--but contact them anyway.

Your reference to a "Promissory Note" is confusing, and makes me wonder whether you know what to be looking for in regards to a form.

When you get the 1099-R forms, call the AARP information office in your area and ask if there is a Tax-Aide location nearby; if you can find one, you can go there for professional-quality tax preparation free.