I'm trying to breathe deeply and not get too upset about this. I know there are worse problems in the world. But, I am upset.
I do the taxes in our family. Mostly because I learned as a teen and dh didn't. And I have a business and need to do that part anyway. (Dh hasn't bothered how to learn to do online banking or even purchase anything online. ) So, I filed an extension on Tuesday because there is this business mess that hasn't been figured out and it wasn't going to get figured out by midnight.
In the course of continuing to work on rest of our taxes, I discovered that dh hadn't taken the required minimum distribution from his beneficiary IRA from when his dad died. I took mine from my mom and told him to get his taken care of. So, he called back in December to check on it and they told him that it was already taken care of. So, when I couldn't find his tax form for his distribution, I looked over his account. NOPE. There was no distribution last year. So, the Morgan Stanley people are saying that it is our responsibility. But, Dh did his due diligence up to calling to check on it.
So, from what I understand, the tax penalty for not getting this distribution is 50% of what we were supposed to take out? Is this part of our return? If so, then it is over and above the refund we are expecting and then we will have a penalty for filing the extension, but not paying taxes owed.
I keep trying to think of ways to reduce our tax burden to help make sure that we are not incurring that addtional penalty. Our medical expenses are only about $900 under the threshhold where we can claim a deduction. (We paid a ton of out of pocket and we didn't have an FSA this year due to dh's employer messing up big time the last couple of years.)
So, how do I proceed? What do I do next so that I don't incur even bigger fines?