Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My husband and I are buying a house that will close before…

Customer Question
Hi. My husband...

Hi. My husband and I are buying a house that will close before year end. We are each taking out $10k from our IRAs to help with closing costs. We will have a total salary (including these two $10k payments) of about $155k for the year (married filing jointly) and are trying to figure out how much to withhold from federal and NY state so that we are not hit with a big tax bill in the spring. Any thoughts on this?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

We also have a child and do the standard deduction on our taxes.

Submitted: 8 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
11/16/2017
Tax Professional: Lev, Tax Advisor replied 8 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
Experience: Taxes, Immigration, Labor Relations
Verified

With combined gross income $155k filing a joint tax return - most likely - you will be in 25% tax bracket.

See here

https://taxfoundation.org/2017-tax-brackets/

So - your additional IRA distribution will likely be subject to 25% federal income tax.

Generally - when distributed amount up to $10,000 is used to purchase a home - you may claim exclusion from penalty.

Otherwise - there will be 10% penalty on distribution if you are below 59 1/2.

Ask Your Own Tax Question
Customer reply replied 8 months ago
OK so I should probably have my IRA company deduct 25% from the distribution before it's paid to me to be safe. It looks like I also have an option to deduct for NYS tax. Does it make sense to do that now or deal with it at tax time? If now, do you know what amount I should deduct? Since it is being used to purchase a home I had planned to claim exclusion from penalty.
Tax Professional: Lev, Tax Advisor replied 8 months ago

You actually meant withholding - that will be credited toward your tax liability when you file the tax return.

If you want to minimize possible additional tax liability - yes - you may ask to withhold 25% instead of 20% which would be normal withholding on IRA distributions.

On the other hand - after withholding - you will have $7500 to use toward your purchase and that might create a different issue...

In general - if you will have funds at the tax time - it might be better to pay the remaining tax liability rather later.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
33,115 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,512 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
We have forecasted our income for 2018 to be $86,500, but we
we have forecasted our income for 2018 to be $86,500, but we are taking out $63,000 of our retirement fund. We want to increase the amount of federal withholdings from my paychecks to offset the taxes… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I need to take a withdrawal from 401k early. aside from 10%
i need to take a withdrawal from 401k early. aside from 10% penalty how do I figures what will be enough for taxes? last year my income was only 28K but my husband was at 143K … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,465 satisfied customers
Chad, we spoke a few days ago about my tax/refund situation.
Hi Chad, we spoke a few days ago about my tax/refund situation. In looking at the W4 form, if I follow the worksheet and enter the number of allowances that it says I should claim, I would be claiming… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,465 satisfied customers
We have just sold our home, we were upside down on our loan.
Hi, we have just sold our home, we were upside down on our loan. We lost over 65 … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am married with two children and work in NY but reside in
I am married with two children and work in NY but reside in NJ. My husband and I are in two different tax brackets and just recently bought a house in December in NJ. I want to know what is the best w… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
I'm a Freelance Theatrical Designer and my husband is a
I'm a Freelance Theatrical Designer and my husband is a salaried full-time employee. I gross about 35k/year and can write off about 20k/year in actual expenses. He grosses 75K. We own (paying a new mo… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My partner and I have been together over 35 years and were
My partner and I have been together over 35 years and were able to have our commitment legalized by marriage in 2014. She has retirement funds in a 403b and a private pension, I have retirement funds … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have been separated from my husband and lived in a different
I have been separated from my husband and lived in a different state for the entire year of 2011. Can I file my state tax as married filing single even if we file as married filing jointly for federal… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I am trying to figure out how much withholding to take for
I am trying to figure out how much withholding to take for next year. I want to come as close as possible to not owing the IRS, but not getting back a huge refund - we need the money during the year. … read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
Hello, I am a 58 year old male who is getting a legal separation
Hello, I am a 58 year old male who is getting a legal separation from my wife of 10 years. She is 59. As part of our legal separation agreement, I will liquadate a large part of my IRAs ($250K) and tr… read more
Jax Tax
Jax Tax
Senior Tax Attorney
Master's Degree
1,363 satisfied customers
I have just inherited an IRA and am planning on taking out
I have just inherited an IRA and am planning on taking out $56,000. [Possibly more to buy a house with my son.] My income is $35,000. I am considering whether to take it out over 2 years. I am also pl… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
Filing Seperate married vs Joint.... I am in the middle of
Filing Seperate married vs Joint.... I am in the middle of a divorce and I want to file seperate married. I get that everyone is saying we would get more if we did it jointly, but honestly how much of… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
I am getting married in 3 days.he makes 155k I make 35k. Should
I am getting married in 3 days.he makes 155k I make 35k. Should I wait until 2011 to marry so I can file single this year and pay less tax than if we marry and file married seperate?… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
I am in the middle of a divorce. Well my husband and I have
I am in the middle of a divorce. Well my husband and I have had the house for sale but we know that the market is not moving. Well he wants to move in with his girlfreind and he wants me to take money… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
Hi My husband and myself are alien non resident regarding
Hi My husband and myself are alien non resident regarding the federal tax and part year resident regarding the NY state tax. My husband is working and has got a SSN but I am not working and can't appl… read more
Gerri A Harrison CFP EA
Gerri A Harrison CFP EA
Financial advisor/Tax preparer
Bachelor's Degree
86 satisfied customers
My wife and I have a combined income of 134K in Albany New
My wife and I have a combined income of 134K in Albany New York. We're about to buy a house at 284K with closing costs of around 10%, predicted mortgage payments of 1900, and plan to use 10K (maximum … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My husband and I had a combined income of $157,000 last year
My husband and I had a combined income of $157,000 last year and live in NYC. I contributed 8.5% of my income ($94,400), and I didn't pay anything into Social Security (a function of contributing a ce… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
My husband and I were separated for the entire year of 2007 ...
My husband and I were separated for the entire year of 2007 (Md does not have a legal separation status). I am try to figure out how we should file: married filing jointly, married filing separately, … read more
RD
RD
Self Employed
Master's Degree
1,164 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