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Hi, my name is ***** ***** welcome to Just Answer. I'm an attorney and it sounds like you want to withdraw funds from some type of retirement account while you can still claim two dependents on your tax return. Basically, there is a 10% penalty for an early withdrawal of funds from retirement accounts if you are not disabled. So if you were to withdraw $25,000, you would have $2,500 added to your income tax, and that would substantially reduce any benefit you'd receive from claiming that second dependent. So it would depend on how much you want to withdraw. The personal exemption amount for 2017 will be $4,050.00, so the second dependent will reduce your taxable income by that amount. The plan administrator is also required to withhold an additional 10% for income taxes. Your withdrawal will be taxed the same as if you were a citizen or resident.
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