I am taking an early distribution from an IRA. I know what to withhold for my federal taxes but I want to make sure I know how much to withhold for state taxes (NC).

amcnulty1003 · ‎June 4, 2019

I live in NC and want to make sure I withhold enough to cover state taxes. Also, do I get that money back if I withhold too much? Thank you.

MarilynG · ‎June 4, 2019

Yes, you will get that money back if you withhold too much.

How much you should withhold for North Carolina tax depends on the tax rate there and how much you are taking out of the IRA.

If you are taking a large amount, it could put you into a higher tax bracket.

Here's a link to North Carolina Dept of Revenue:

https://www.ncdor.gov/

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MarilynG · ‎June 4, 2019

Yes, you will get that money back if you withhold too much.

How much you should withhold for North Carolina tax depends on the tax rate there and how much you are taking out of the IRA.

If you are taking a large amount, it could put you into a higher tax bracket.

Here's a link to North Carolina Dept of Revenue:

https://www.ncdor.gov/

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

amcnulty1003 · ‎June 4, 2019

Thank you. I was planning to withhold both state and federal taxes based on my effective tax rate. I don't think it would push me into another tax bracket so I feel like I would be OK as long as I withhold at a rate that is similar to my effective tax rate?

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I am taking an early distribution from an IRA. I know what to withhold for my federal taxes but I want to make sure I know how much to withhold for state taxes (NC).