I withdrew my $74,000 IRA in July 2021. I was 56 years old. I wanted a Motorhome! I bought it! We Live in South Carolina. We filed our taxes in April 2022. My husband was 61 and his wages income was $4,173.00. My Self-Employed Income for the year was $20,640.00. Our wage income combined was approx. $24,800 but looks like we made over $111,000.00 ! After filing Married /Jointly, we ended up paying the Federal $15,333.00 and the State of South Carolina $3,548.00. I am devastated! We are not well-off by any means. Did I make a huge mistake doing my taxes? Or, did I make a Huge mistake by withdrawing my IRA to purchase an RV? We paid almost as much in taxes as we actually earned for the year of 2021! $18,881 in Taxes to the IRS. We only made $20,640!
Any advice you can provide would be helpful for the correct way to file my 2022 taxes to maybe recoup some of that money I am OUT.
