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crystmom
New Member

Do I have to pay federal taxes on an early IRA withdrawal used to pay past due state taxes? The entire amount of the withdrawal was used to pay the state tax bill.

 
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1 Reply
IreneS
Expert Alumni

Do I have to pay federal taxes on an early IRA withdrawal used to pay past due state taxes? The entire amount of the withdrawal was used to pay the state tax bill.

Unfortunately, yes.  You will owe federal taxes on the withdrawal as well as a 10% early withdrawal penalty if you are under age 59-1/2.

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