What will I have to pay on an early withdrawal of my IRA if I have no income for this year?

[DoninGA]

The 10% early withdrawal penalty is assessed on your tax return for 2023 based on the information you enter from the Form 1099-R you will receive in January 2024 for a withdrawal in 2023.

You are required to enter the Form 1099-R on your 2023 tax return.

[rcaa2018]

I know that I will pay 10% penalty on my early withdrawal of the IRA but what additional fee will I pay when filling my taxes with no other income except for this IRA payout?

[Opus 17]

The 10% penalty for early withdrawal is always applied.

You will pay regular income tax on any amount of taxable income that is more than your standard or itemized deduction.  Standard deductions for 2023 are

Single; Married Filing Separately	$13,850
Married Filing Jointly & Surviving Spouses	$27,700
Head of Household	$20,800

[rcaa2018]

So basically I pay the 10% penalty when withdrawing and I'm in the 10% bracket for taxes so I'll be paying another 10% when filling taxes on the amount withdrawn as it is my only income for this year, yes?

[DoninGA]

The penalty is not applied when you make the withdrawal.  It is applied when completing your tax return and added to your total tax liability.

Your tax lability is based on your taxable income which is the amount after deducting the Standard Deduction from your reported income.

[Opus 17]

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@rcaa2018 wrote:

So basically I pay the 10% penalty when withdrawing and I'm in the 10% bracket for taxes so I'll be paying another 10% when filling taxes on the amount withdrawn as it is my only income for this year, yes?

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All penalties and taxes are only calculated on your tax return.  You may have tax withheld from the distribution, but that is only an estimate of what you will eventually owe.  This seems nitpicky but it is an important distinction to prevent misunderstandings later. 

Depending on how the withdrawal is processed by the plan administrator, there will likely be mandatory withholding of 10% or 20%.  But that's still an estimate.  When you prepare your tax return, the actual tax and penalty are calculated, and if you paid in more than you owe, you get the difference back as a refund.  

[VolvoGirl]

For the withdrawal,  you don't actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You have taxes withheld like from a paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.

It will break out and show the 10% penalty separately on your return (schedule 2 line 6 which goes to 1040 line 23). Then you get credit for all the withholding taken out on 1040 line 25b.