Taxes on traditional IRA withdrawals

Taxes on traditional IRA withdrawals

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  #11  
Old 11-12-2018, 10:30 PM
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manaboutown manaboutown is online now
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Quote:
Originally Posted by rjm1cc View Post
Go to the IRS site and look for a link to free software and us that to estimate your tax. If you are using last years software your tax will probably be too high.
The money you take from the IRA is taxed just as if it was wages so you can put it on the wage line if you can not figure out the correct retirement line which can be confusing due to ROTH's.
It is not taxed as wages (earned income) as there are no deductions for social security. It is simply taxed as income.
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  #12  
Old 11-12-2018, 11:40 PM
tophcfa tophcfa is offline
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Originally Posted by retiredguy123 View Post
I would recommend you buy Turbotax Basic ($29.99 from Amazon or Staples). Then, you can plug in any combination of income options you want and also file your taxes at the same time.
Exactly what I would recommend.
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  #13  
Old 11-13-2018, 03:32 PM
Dan9871 Dan9871 is offline
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+1 on talking to Bob Bloom. He's very helpful and knows all this tax stuff inside and out.
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  #14  
Old 11-13-2018, 05:26 PM
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Originally Posted by manaboutown View Post
It is not taxed as wages (earned income) as there are no deductions for social security. It is simply taxed as income.
You are correct that their are not payroll taxes. But on the wage line for the 1040 you put the gross wages and the software will correctly compute the income tax. If you owe SS you would use form SE. My suggestion was just a quick easy way to get the answer he was looking for and not how to file an actual tax return.
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  #15  
Old 11-14-2018, 09:49 AM
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I wonder if you are being confused because of the word "taxable". It does not mean there definitely will be taxes due, it means those dollars are not automatically tax free. So taxable means the dollars will be used to calculate your tax due, which could still be zero.
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Old 11-14-2018, 12:03 PM
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"Report the total amount of the traditional IRA distribution as the taxable amount of your IRA distribution unless you made nondeductible contributions. On Form 1040, it goes on line 15b. If you're using Form 1040A, report it on line 11b. If you've made nondeductible contributions, calculate the taxable portion of the distribution with Form 8606. Then, report the total distribution as an IRA distribution on line 15a of Form 1040 or line 11a of Form 1040A, and report the taxable portion on line 15b of Form 1040 or line 11b of Form 1040A."

from

https://finance.zacks.com/report-ira...turn-3811.html
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