I'm 31 years old and will be withdrawing $15,000 from my Rollover IRA, my wife and I left the US in March 2018. How much federal and state tax should I withhold?

Forum|Forum|7 years ago
June 6, 2019
3 replies
14 views

Neither of us have any other US income since we left in 2018

TurboTax Deluxe Online

Best answer by MichaelL1

If this is only income then you will have $0 taxable income for 2019. As the Standard deduction is $24,000 for a couple.

Now the one area due to being under 59 1/2 there is a early withdrawal penalty of 10% (for a Traditional IRA) on the Federal return which would be $1,500 so I would have that taken out.

If this is a Roth the 10% penalty would only apply to the earnings and not the contribution you made. So if you put $14,000 in the Roth and have $1,000 of earning, then the early withdrawal penalty is then $100.

There is no income tax only a penalty based on the taxable income ($0) you would have.

MichaelL1

Level 15

So Married Filing Joint and approx taxable income?

evanheddAuthor

Level 2

Yes, Married Filing Joint and $0 taxable income in 2019 (apart from the $15k withdrawal)

MichaelL1Answer

Level 15

If this is only income then you will have $0 taxable income for 2019. As the Standard deduction is $24,000 for a couple.

Now the one area due to being under 59 1/2 there is a early withdrawal penalty of 10% (for a Traditional IRA) on the Federal return which would be $1,500 so I would have that taken out.

There is no income tax only a penalty based on the taxable income ($0) you would have.