Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
To calculate your tax, I would need to know some more information about you.
First, what is your filing status - married, single, head of household
How many dependents do you have/
If you are married, do you file a joint return?
Also, what is your other income? How much do you (and your spouse) make from other sources?
All this is relevant, because it will help determine what tax bracket you are in. The higher your tax bracket, the greater the tax.
head of household
Thanks for that information. I'll wait until you have the rest of the information for me.
12 year old son, last year income 115k, this year 125
I just started a new position in July at 125k
Does the 125 include your 40K withdrawal
no it doesn not
Okay thanks for that. Do you take the standard deduction, or do you have mortgage interest and real estate taxes?
I believe I take mortgage interest and real estate taxes.
Do you know how much your mortgage interest, real estate taxes, and medical expenses are? Do you make charitable contributions?
I'm trying to give you the most accurate tax total as possible.
But we can eyeball it based on the standard deduction, it should be pretty close. I'd rather tell you too much tax than not enough.
$1,561.06, county tax
ok thanks for that
medical out of pocket apprx 330/mo and I donate clothes to AmVet and occationally to Amnesty intl.
Your medical would not be enough to get you a deduction, I can already tell.
I just started paying out of pocket in July for healthcare
Your 401(k) will bump you from the 25% bracket into the 28% bracket.
So, federal you're looking at $11,200
plus the $4,000 penalty
and I'm calculating state tax now. It's a rough figure.
I did that by taking your federal taxable income and seeing the difference between your total income and your income without the 401(k) distribution, using California's income tax calculator.
You're looking at a hefty tax bill on this withdrawal.
Did you have any further questions about this?
Yes. It's hefty.
I'm sorry that I didn't have better news
I don't. Thank you. You have been very helpful.