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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I have appx. $10,000 owed in Credit cards.. trying to pay aboutt

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I have appx. $10,000 owed in Credit cards.. trying to pay aboutt $1000/mo, but with recent retirement this is cutting me short with living expenses....I can of course pay less/mo, or was wondering if I cashed in one of my IRA's worth about 10,000, I would have much more flexibility month to month. What would my tax liability be with an income (including the IRA) of about $43,500. I will be 69 in a month, and I understand I will have to cash in some amt. when I reach 70...any advise would be greatly appreciated
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello JA Customer,

 

Do you file your taxes as single or married?

 

Is any of the $43,500 income from SS benefits? If so, how much each year do you receive from SS?

 

 

Customer: replied 6 years ago.
I receive 1857/mo from soc.sec....I file single
Expert:  Merlo replied 6 years ago.

Hello again JA Customer,

 

When you receive SS benefits, you are only allowed to have a certain amount of other income before part of your SS also becomes subject to tax. If you are going to have a total of $22,284 in SS benefits plus another $21,216 in other income (including your IRA withdrawals), this will mean that $3,679 of your SS is also subject to tax. This would give you total taxable income for the year of $24,895. Your taxes on that amount would be $1,703.

 

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Thank you JA Customer

 

 

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