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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3096
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I want to cash out my 403b. I am 61 years old. Account

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I want to cash out my 403b. I am 61 years old. Account has $13,000.
My current salary is $98,000. What will be my additional tax liability?

Welcome and thank you for giving me the opportunity to assist you with your tax question. Please advise what your filing status will be for 2013, and I will advise what the tax rates are. Thank you.

I see you are now offline. The tax rates for single and married are as follows:

 

Single - if your TAXABLE income is over $87,850 but not over $183,250 the tax will be $17,891.25 plus 28% of the excess over $87,850.

Married filing a joint return - if you TAXABLE income is over $72,500 but not over $146,400, the tax will be $9,982.50 plus 25% of the excess over $72,500.

Your TAXABLE income is the amount you pay tax on after taking the appropriate deductions and exemptions.

Please let me know if you require additional information or clarification. Thank you.


Customer: replied 3 years ago.
So the amount of extra taxes I will owe would be 28% of $13,000.00?
Your total tax liability would be $17,891.25 plus 28% of the excess over $87,850. As I mentioned, this tax rate applies to your TAXABLE income which would be less than $98,000 plus $13,000 depending on your deductions/exemption.
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