☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 4:31:44 PM

I recently took an early withdrawal from my 401K. 20% was withheld for federal taxes. Is there a way I can prepare for tax season next year and know what else I will owe?

The withdrawal amount is 14,000 and 2,800 was withheld. I am currently in the 25% tax bracket and this withdrawal will not push me to the next bracket. I live in Colorado, so I am wondering what state taxes I will need to anticipate paying next year. thanks!

0 1 1492
1 Best answer
Alumni
Jun 4, 2019 4:31:46 PM

An early withdrawal will be taxed at your current tax rate + 10% penalty.  So it appears that the total tax liability for federal on that 14K will be approx. $4900 less the $2800 already withheld, that leaves an addiotnal $2100 due.

State tax an penalty will depend on your state.  I know the state of CA charges 2.5% penalty on early withdrawals.

1 Replies
Alumni
Jun 4, 2019 4:31:46 PM

An early withdrawal will be taxed at your current tax rate + 10% penalty.  So it appears that the total tax liability for federal on that 14K will be approx. $4900 less the $2800 already withheld, that leaves an addiotnal $2100 due.

State tax an penalty will depend on your state.  I know the state of CA charges 2.5% penalty on early withdrawals.