We took an early withdrawal from an IRA for just under $13500. We paid the 10% tax upon withdrawal of the money. We understand that there is an additional 10% tax imposed. However, what we do not understand is why our federal return would decrease from about $3500 to $500 and our state return would go from a positive to a negative balance? Why are we taking such a hit for this withdrawal? What additional fees are being imposed?
