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We bought our first home this past March. We took advantage of the first time homebuyer IRA withdrawal for the downpayment. Unfortunately, at the time we didn't really consider the financial impact the taxes would have on us when it came time for that. Well, the time is here and we are looking at a considerably larger tax bill than we expected.

What I would like to know is there any way the withdrawal can be divided up over a couple years (please someone say yes!!), or does it all have to be paid in the same year as it is withdrawn?

Thanks!
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What I would like to know is there any way the withdrawal can be divided up over a couple years (please someone say yes!!), or does it all have to be paid in the same year as it is withdrawn?

I wish I could tell you what you want to hear, but there's no way around including all the income on your 2000 return. If you can't pay all the tax by April 16:

1. File on time. The penalty for late filing is 5% of the balance due per month.

2. If you need additional time to pay, see the instructions for line 69 of the 1040.

Phil Marti
VITA Volunteer
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Thanks Phil!

There are obviously lots of people that missed you ...I can see why! Thanks for taking time out of your personal life to help us out.

Stacy
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