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?

[evanhedd]

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

[MichaelL1]

So Married Filing Joint and approx taxable income?

[evanhedd]

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

[MichaelL1 · Accepted solution]

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.

[evanhedd]

Thanks Michael