Im looking to withdraw from my 401k to pay off debts as I recently quit my job, if i am married filing jointly and we currently make $157,000 together and I withdraw either $25k or $50k how will that impact my tax return next year?
Early withdrawals are subject to a 10% penalty if you are younger than 59 1/2, and the distribution is also subject to ordinary income tax at the tax rate for your income level. You would receive a 1099R in January that would have to be entered on your 2019 tax return.
add $25,000 to your 2018 Taxable Income.
Subtract the Income you're not going to get because you're out of work,
and look it up in the Tax Tables.
That will be an estimate.
Then add on another $2,500 penalty tax.