I took 35,000 from my IRA. They sent 20 percent to the IRS. How much will I have to pay on my income taxes?

Answer 1

In order for this question to be answered thoroughly, you need to give more information. What type of IRA is it? A Roth IRA is taxed differently than a traditional IRA (info also attached). Your age is also a big factor, as you are taxed differently if you are of retirement age than if you are not. Plus, if you are not, there may be a penalty for early withdrawl of 10%, or $3,500. We need to know WHY you took it out - sometimes there can be reasons that will qualify you to avoid the penalty. And finally, if you took it out, you're not retired, did you roll it over into another retirement account? If you can answer these, I'll get you a better answer. But you might find your answer in the attached IRS publications.

Answer 2

It depends on what other income you have. IRA withdrawals are taxed as regular income. The 20% might cover the taxes due. If you have much other income, you might owe more. If you're married filing joint, should be OK unless you have a significant amount of other income.

You could download a form 1040 from irs.gov and enter all your income, then calculate taxes. 1040 instructions are on irs.gov also, so you can see the table or schedule you need to actually calculate tax. Forms out there are last years, but it will give you a good estimate - won't be exact.

I am assuming you're at least 59-1/2. If not, you'll owe a penalty for the withdrawal, in addition to the taxes.

Answer 3

Your question can not be answered with the information provided. One would need to know your age and reason for making the distribution as well as your AGI without the IRA. With that information one could provide an answer as to what your tax on the added AGI would be but not what you total tax liability might be.