I was outside the country last year and took around $15K out of my IRA account. I assume that as my taxable income for last year is less than 15K there will be No tax. Is my assumption correct?
2007-04-10 12:01:58 · 4 answers · asked by vramank 1 in Business & Finance ➔ Taxes ➔ United States
That's a really bad assumption.
Roth IRA - you probably only owe a 10% penalty
Traditional IRA - you owe the 10% penalty, plus income taxes if the income taxes were not withheld at the time you took your distribution.
You should have received a 1099 for this. You need to add the 1099 to your tax return.
2007-04-10 12:09:56 · answer #1 · answered by Lisa A 7 · 0⤊ 1⤋
No, not at all. That income is fully taxable and the filing threshold for a Single taxpayer is $8,450, not $15,000.
On top of that, there's a 10% penalty tax if you're under age 59 1/2 that can't be avoided even if your income is below the filing threshold for your filing status.
So, if you're single and under age 59 1/2, you will owe a fair chunk of taxes -- around $2,500 or so. Get going, you only have a very few days to go!
2007-04-10 19:08:40 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
It's not correct, unless you're filing a joint return, the $15K was your only income for either of you, and you're over age 59-1/2, in which case you wouldn't be required to file.
2007-04-10 20:17:42 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Was it a Roth or Traditional Account? Could be penalties depending on your age. If a Roth and you have contributed more than 15000, no problem as long as it has been in for at least 5 years I believe. Traditional would be a penalty unless you are 59.5 or older.
2007-04-10 19:07:10 · answer #4 · answered by Lee T 2 · 0⤊ 0⤋