Taxes

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My daughter needs $32,250.00 and asked me to take it out of my IRA. I live in Josephine County Oregon. Im a senior on SSI, $1,467.00 a month. How much federal, state and any other taxes would I have to pay?

Not A Product Question

Opus 17Answer

Level 15

Expert Reviewed

You can use the TaxCaster to estimate the effects of the withdrawal.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

If your only other income is SSI, it is tax-free. Once you start to have other taxable income, not only is that income taxable, but there is also the possibility that part of your SSI will also be taxed. Since it's a complicated formula and something of a moving target, some kind of software tool is going to give you the best estimate.

If you are under age 59-1/2 and NOT permanently and totally disabled, then there will be an extra 10% penalty on the IRA withdrawal, on top of the regular income tax. If you are over 59-1/2, or you are under that age but disabled, there is no additional penalty.

Opus 17

Answer

Level 15

Expert Reviewed

You can use the TaxCaster to estimate the effects of the withdrawal.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

xmasbaby0

Level 15

Expert Reviewed

And......a gift of over $32K to your daughter will require you to prepare a gift tax Form 709, which is not a part of an income tax return and which is not supported by TurboTax.

Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($19,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

Here's a link for Form 709 preparation software:

https://www.puritas-springs.com/product-category/federal

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**