Income Tax ??

[todpod]

I have an inherited irs from my dad that I am going to cash out, I need to come up with an estimate on how much tax to withhold. So the basic numbers are this

HH Members, me, wife, 3 kids, 17,15 and 9

Income 53000
ira $42000

We will ave had about $2600 withheld from our paychecks, Not other major deductions. No penalty on the ira withdrawn.

From online calculators I have estimated that I need to withhold about 10% of the IRA to cover income taxes. Does that sound about right? I just want it to be fairly close so I don't have a big tax bill.

 

[JEDIYoda]

duh...call the IRS.....

 

[John Connor]

Give it all to me and I'll let you know. You can trust me!

 

[kranky]

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Use Taxcaster to simulate your situation and you'll get a good idea.

 

[todpod]

Thanks, Kranky, that told me what I need to know

 

[kranky]

:thumbsup:

 

[jaha2000]

No early withdrawal fees? I would suggest talking to a financial guy.

 

[sdifox]

Interesting, the banks don't do the withholding on the spot? Up here it is withheld and submitted to tax man when you withdraw.

 

[TwiceOver]

No early withdrawal fees? I would suggest talking to a financial guy.

Not on an inherited IRA.

 

[jaha2000]

Now that i am more awake i can type something out logical
10%?
Assume you file as married/together.
I come up with a fedral tax difference of about 8300 bucks. Keep in mind that IRA shows as income, and will make you jump from the 15% to the 25% tax bracket. (Assume this is not a Roth IRA). Your state tax would be higher as well. I would keep 25% of that around to pay the tax if it was me.

 

[edro]

Buy an Escalade.

 

[todpod]

Yeah no early withdraw penalty, had them with hold 10%, Gonna stuff it in a short term cd, may buy or build a house.