I am planning on taking an early withdrawal of some of my traditional IRA. I understand that I will have to pay a 10% federal tax penalty, in addition to claiming the amount as income. My question was if there was a Georgia state tax penalty (I live in GA) that I will have to pay as well. Again, I understand I will need to pay state income tax on the amount received.
There is not a Georgia state tax penalty for an early withdrawal from a tax deferred retirement account. That is a federal penalty only reported as a tax liability on a federal tax return.