In 2005, I had an early pension withdrawl for gross amount of $9550.91?

Question

$9550.91 * 20% (federal tax which was automatically withheld) = $1910.18.

The amount of the check I received was $7,640.73

So what other dollar amount am I responsible for according to the IRS?

25% of the $7,640.73? I made over $70K in 2005.

Answer 1

If you are just now filing your 2005 federal income tax, you probably will owe late fees and interest on any taxes exceeding withholding. You tax liability would be based on $9550.91 plus your other income. The $1910.18 withheld would be added to the federal withholding from you other income.


Depending on what kind of pension you made the early withdrawl from, you might owe a 10% early withdrawl penalty.

Answer 2

You should have shown the total $9550.91 on your return as income, and included it when you figured your tax, then added the 10% penalty to your tax. Since you are asking now about something from 2005, I'm assuming you didn't do that then, and that the IRS has now notified you of the amount you owe. You don't say what your filing status was in 2005. You were probably in a 25% bracket, and unless you were married filing a joint return the withdrawal probably went into the next bracket. So the total you'd owe is probably around 35% of the withdrawal or a little more. Since 20% was already withheld, the additional you'd owe on the withdrawal would be around $1500.

Answer 3

should be 15% of the 9550.91 gross withdrawal - they already withheld 20% for taxes