I cashed in an old 401K. How much state tax will I need to pay?

Question

I cashed in and old 401k that was $ 10,000. They already took abot $ 2000 for federal, but did not take State tax out. I know that I need to pay it, but I don't know how much...

Answer 1

Depends on what state you live in.

http://www.taxadmin.org/FTA/rate/ind_inc.html

Answer 2

once you're taking an early withdraw on a 401k, the corporate that manages the fund withholds 20% for federal earnings taxes. That became the place the $4 hundred went. whilst she information her 2009 tax return, she'll could document the quantity of the distribution (withdraw) as earnings. this might advance the completed taxes she owes, in basic terms like a number of advance in earnings might do. She'll additionally owe a ten% penalty which would be further to the quantity she owes that 3 hundred and sixty 5 days. The $4 hundred counts as a tax fee. whilst all is asserted and performed on the tax return, she'll get a reimbursement if she overpaid, or she'll owe extra if she underpaid. without understanding different products of information, its impossible to tell the way it fairly is going to finally end up.

Answer 3

Also....keep in mind that you may still owe more to the feds because of it.

For example: (Assuming a 15% tax bracket)

$1500 Federal Income Tax
$1000 Federal Penalty
$2500 Total Federal Taxes
($2000) Less: Withholding
$500 Balance to pay

If you are in a higher bracket, you will owe more.

Answer 4

To add to misunderestimated's correct response that it depends on what state you're in, and link showing state rates, there might be additional things that come into play. Pennsylvamia for example doesn't tax pensions, including withdrawals from IRA's and 401K's, so at least in PA, you wouldn't be taxed on the withdrawal even though PA has a flat 3.07% tax on income that they do tax. I don't know if any other states exempt pensions or not.