How much in tax would I have to pay on $70,000 .And will I also have to pay penalitys.
2007-04-24 10:38:17 · 3 answers · asked by LONNIE J 1 in Business & Finance ➔ Taxes ➔ United States
The 10% penalty only applies if you are under 59 1/2. Whatever you withdraw is added to any other income and taxed at the same rate as regular income. The figures below assume you are single, have no dependents, use the standard deduction, and have no other income. I also used 2006 numbers.
AGI: $70,000
Exemption: $3300
Standard Deduction: $5159
Taxable income: $61,550
Tax: $5390
This is the 15% marginal tax bracket.
2007-04-24 11:10:02 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
You won't have to pay a penalty, whether you're actually retired or not - you're over 59-1/2.
You will pay income tax at your regular tax rate, whatever that is - it depends on your other income, filing status, dependents, and deductions, so there's no way to give you an answer on the amount you'll pay. The withdrawal from your IRA will be taxed as ordinary income.
2007-04-24 19:43:58 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
I believe it's 25% out of the 70 grand .
2007-04-24 17:46:42 · answer #3 · answered by Anonymous · 0⤊ 2⤋