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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29782
Experience:  Taxes, Immigration, Labor Relations
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I've earned 7,000 this year as a graduate student I took out a 49000 403b disbursem

Customer Question

I've earned 7,000 this year as a graduate student
I took out a 49000 403b disbursement from Wisconsin and they withheld 10000 in taxes and penalties
I will make 25000 gross the remainder of the year
I will be divorced this month
I also have a business where I have registered a 2000 loss
I have driven 8000 miles for business
7000 income is in Illinois
49000 is from Wisconsin
25,500 will be in Georgia
Wondering if I will receive a return or will owe taxes
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
Assuming you will file Single - standard deduction with following income$7000 wages you received as a graduate student$25,000 additional wages you will earn till the end of 2015$2000 business loss$49000 retirement plan distributionBased on these assumptions - your estimated income tax liability ~$13000 plus $4900 additional tax on early distribution - total $17,900.Withholding will be credited toward that liability - 10000 withheld from retirement plan distribution and additional amount withholding from wages (based on your W4).That what you may expect o your federal income tax return.
Expert:  Lev replied 2 years ago.
Regarding state income tax liability - that 403b disbursement will be taxed ONLY in the state where you are a resident at the time of payment.That is regardless if the payee is located in a different state.Your state of residency will determine your state tax liability.This if you are living in Georgia - but that 49000 403b disbursement came from Wisconsin - you will be ONLY responsible for Georgia income tax on that income.Let me know if you need any help or clarification this matter.