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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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hI, i AM 62 AND HAVE A IRA IF $40,000, I WILL BE NEEDING MOST

Resolved Question:

hI, i AM 62 AND HAVE A IRA IF $40,000, I WILL BE NEEDING MOST OF THAT NEXT MONTH FOR MY BILLS, I HAVE $13,000 INCOME IN RENT AND 9,000 FROM SOCIAL SECURITY.   WHAT IS MY TAX FOR A $ 30,000 WITHDRAWAL???
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.
Do you file single, married jointly, or married separately?
Customer: replied 7 years ago.
i am divorced, file single
Expert:  Bill replied 7 years ago.
Assuming the $13,000 is your net rental income after expenses, then the federal income tax on your total taxable income (including the IRA withdrawal) would be approximately $6,513. The distribution from the IRA would result in 85% of your social security benefits becoming taxable.
Customer: replied 7 years ago.

$13000 rental income minus $8400 r.e. taxes

than i receive $800/mo = $9600 from Social Security

Expert:  Bill replied 7 years ago.
If your net rental income after expenses is $4,600 ($13,000 - $8,400) then $8,160 (85% of $9,600) of your social security benefits will be taxable and an IRA distribution of $30,000 will result in total taxes of approximately $4,594.
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