topic early withdrawal from IRA acct. withdrew $3000 in 2 $1500 distributions 2 mths before 59 1/2. paid $300 in taxes. What is the add'l taxes due for $3000? in Retirement tax questions

early withdrawal from IRA acct. withdrew $3000 in 2 $1500 distributions 2 mths before 59 1/2. paid $300 in taxes. What is the add'l taxes due for $3000?

frednoratrevino — Wed, 28 Jan 2026 06:44:57 GMT

Re: early withdrawal from IRA acct. withdrew $3000 in 2 $1500 distributions 2 mths before 59 1/2. paid $300 in taxes. What is the add'l taxes due for $3000?

VolvoGirl — Mon, 27 Jan 2025 23:30:18 GMT

10% Early Withdrawal Penalty.

You didn’t actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your 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. You will get credit for the withholding on 1040 line 25b.

It has to break out and show the 10% penalty separately on your return (schedule 2 line 8 which goes to 1040 line 23). Then you get credit for all the withholding taken out on 1040 line 25b.

Re: early withdrawal from IRA acct. withdrew $3000 in 2 $1500 distributions 2 mths before 59 1/2....

BillM223 — Mon, 27 Jan 2025 23:33:33 GMT

The $300 equals the amount of the early distribution penalty (i.e., 10% of $3,000). You will also owe income tax at the ordinary income tax rate on the $3,000. This amount - which is calculated automatically by TurboTax - is equal to $3,000 times your marginal tax rate (10%, 12%, 22%, whatever).