I had a whole life policy cashed in, in 2014. The problem is I asked for it to be cashed in 2015, to give me time to deal with the additional income related to taxable income. The insurance company made a mistake they admitted to. They can't fix it.
So long story short, I have about 10k of additional income for 2014 that I wasn't expecting and now I owe an additional couple thousand in federal taxes, due to the unanticipated increase in taxable income.
Is there anything I can do to offset that income now? The cash from the policy is available and I was planning on investing it in stocks. I was thinking of putting it into an IRA, but when I ran that scenario through TurboTax it either made no difference or actually increased my taxes due.
My income is now $142k for 2014. Taxable is around $98k now. I have a 401k through employer and I do not contribute to any other tax deferred savings vehicles.