467651
We took an early withdrawal from an IRA for just under $13500. We paid the 10% tax upon withdrawal of the money. We understand that there is an additional 10% tax imposed. However, what we do not understand is why our federal return would decrease from about $3500 to $500 and our state return would go from a positive to a negative balance? Why are we taking such a hit for this withdrawal? What additional fees are being imposed?
You'll need to sign in or create an account to connect with an expert.
3000 / 13500 is .2222 which puts you in the new 22% tax bracket.
You already paid the penalty when you took the money out.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
dpa500
Level 2
granitegator
New Member
rhharrod
New Member
wola1
Level 2
valevitaly
Level 1