7

I am expecting a large check (ca 70k) from the IRS for a withholding of a house we sold back in 2013 (I finally got the ok that I will get the withholding back). (We didn't live in the US anymore and so a withholding was put on it) Now I wonder if the withholding is considered income and therefore subject to be taxable in any shape or form?

Thanks :)

  • Did the state also withhold money? If yes, are you getting a refund from that over withholding? – mhoran_psprep Jul 31 '18 at 10:55
  • hmm.. not sure if I understood the question, but I don't think so. We sold a house in San Francisco in 2013, but I only had IRS papers for it, nothing from CA afaik. The IRS kept 10% of the sale price to ensure that we pay all taxes properly (as we were out of the country already when we sold it). – Sebastian Jul 31 '18 at 10:57
14

It is not

Withholding is money FROM your income being hold back to pay the tax. If the tax turns out to be lower, then the leftover is returned (in your case all). As such, that is not income.

  • thank you, I thought so too and that does make sense to me. – Sebastian Jul 31 '18 at 8:57

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