Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Have a question about early Ira withdrawl I'm trying to

Customer Question
understand the penalty associated with...
Have a question about early Ira withdrawl I'm trying to understand the penalty associated with early withdrawl and the taxation following early withdrawl ? As far as I been told early withdrawl in my if state matters will penalize me 10% and then I was told I'd be taxed in the money I withdraw as income , how does the racing work is it just added to my yearly income from work and other things and then taxed as a total depending what bracket I fall in ? Or is the Ira money amount after 10 percent penalty is taken taxed alone in its own tax bracket based on fact it was Ira money that I withdrew early I'm 36 and my Ira doesn't mature and is not available for withdrawl Tull I'm 59 and a half
I had total of 13000$ in Ira and I took 10000 of it out for down payment on house and now I have 3700$ left in Ira and I'd like to withdraw that and pay penalty but before I do so I want to know how it's going to be taxed one thanks to it being Ira money two being that I withdrew 10000 of that money penalty free for home buy
So will
I be penalized on just the 3700 now if I withdraw rest of money and will I also be taxed on just the 3700 or will me taking out the 3700 cause me to get penalized on total amount and taxed the same ? Shy info greatly appreciated thank you Ciro
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
2/28/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,236
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello

If you take money out of your IRA before you are 59 1/2 you will pay tax on the amount you take out and you will be penalized on that amount. The penalty is 10% of the amount you take out.

The 10% is shown on your tax return when you file. It is just a straight 10% of the total distribution shown on your 1099R (the document you are sent if you take out).

The total distribution is added to your other income for the year and taxed as regular income.

You pay regular tax on the total and 10% penalty on the total.

If you take out $3700 you will have a penalty of $370 AND the $3700 will be added to your income.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

Ask Your Own Tax Question
Customer reply replied 1 year ago
My fathers accountant was telling me something like I was going to get taxed and or lose a total of 42% if I were to withdraw the Ira money early ?when I still had 13 k in Ira ( I only have 3700 now cause I took 10 out for down payment on house ) Why would this be why would he say 42% I oinly make about 50 k a year before Ira money
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

I do not know why he said 42% unless he was adding all your taxes (fed, state, penalty).

I can just tell you that the penalty is applied to the total of the distribution.

Ask Your Own Tax Question
Customer reply replied 1 year ago
the 10$k I took out for down lumber in house would still be exempt of being penalized correct due to favt I took it out as down payment for house which my father accountant said was penalty free if I use it for down payment and provide proof of ? And as far as tax bracket I'm in, according to what I read online at Ira website I am in the 25% tax bracket even if I withdrew my total Ira if still be way under the amount for next tax bracket
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

An exception t the penalty can apply. A first time home purchase is an exception up to a limit of $10,000.

Most likely the withdraw would not push you up.

Now I am going to ask that you click on a favorable rating.

Ask Your Own Tax Question
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,236
16,236 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

16,236 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Geetings- RE: Equitable distribution and distributive award.
Geetings-RE: Equitable distribution and distributive award.E.D. Judgment: marital home is over-valued. . Broker uses the courts over-valued sales price. . 5 five months later broker recommends $75K sa… read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
If I am reviewing my 2016 Income Tax Returns, which are
If I am reviewing my 2016 Income Tax Returns, which are itemized. (Married, 2 children)Add Line 40 (Itemized Deduction) + Line 42 (Exemptions ($4050 x 4 = $16,200)) which I would subtracted from Line … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My question is about taxation of capital gains on equities,
Hello, My question is about taxation of capital gains on equities, like stocks, options, futures of F1 students. Here the facts:1. F1 student for 4 years in the US2. student does not get any income wi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
How is the California state income tax calculated? I have
How is the California state income tax calculated? I have approximately $55,000 of income before deductions. I am married filing jointly.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,280 satisfied customers
Q2" In context to Taxation, what will be the tax implication
quot;For Socrateaser only Q2"In context to Taxation, what will be the tax implication if I start a new S-Corp in Texas in the month of December rather than starting in January? Assuming that there wil… read more
socrateaser
socrateaser
1,031 satisfied customers
I live in Texas (no State Income Tax) and got offered a part
I live in Texas (no State Income Tax) and got offered a part time telecommute job in the State of California. They are going to take out State Income Tax on my California paycheck. Will i taxed in Cal… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
Given that the current 1041 tax rate on 401(k) income is
Given that the current 1041 tax rate on 401(k) income is $3206 + 39.6% over $12,400, what will be the new tax rate and will it apply for 2017?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
For a ny state partnership tax return, if you file an
For a ny state partnership tax return, if you file an extension but don't pay anything and then end up owing a lot. Do they still recognize the extension or do they charge a failure to pay penalty (fo… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is real estate income taxed only in the state they are
Hi. Is real estate income taxed only in the state they are generated in? For example, if someone owned investment real estate in Texas that has a 0% state income tax and lives in Pennsylvania, would t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
16,236 satisfied customers
Question regarding taxation of partnership distributions and
Hi, question regarding taxation of partnership distributions and capital gains … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,338 satisfied customers
TAX RETURN: Health coverage exemptions I moved from Europe
TAX RETURN: Health coverage exemptions I moved from Europe to the US in mid-2015 and applied for a green card in oct based on marriage to a US citizen (which was granted to me in spring 2016). We are … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
Multi State Taxation 1. Taxpayer is incorporated in one
Multi State Taxation1. Taxpayer is incorporated in one State and also has certificate of authority to work in another state. However, entity has employees and processes and files payroll tax return in… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
What is the income tax rate if it is not withdrawn from the
Hi! What is the income tax rate if it is not withdrawn from the LLC? The owner has not withdrawn any balance from the business all the amount reinvested into the business. Thank you!… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
This is a question about taxation of income/gift received
Hi,This is a question about taxation of income/gift received from a foreign family trust. We're in the process of creating a family trust in New Zealand. My mom is not a US citizen (Turkish citizen, l… read more
Robin D.
Robin D.
Senior Tax Advisor 4
16,236 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x