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I'm looking for some rough idea of how much we might owe for taxes this year. Here's my situation... We are a family of four (2 young kids), hubby will make approx $50,000 this yr, and in January of this year he cashed out his 401k and pension (I know, I know... but we had to, long story.) The total between the two of those accounts that we got in cash was right at $40,000. We used it all to pay off debts and buy our home. So, my question is, can anyone who is good with taxes give me a rough idea of what we might have to pay to the IRS come tax time?? I've used various tax calculators online and have come up with all kinds of different answers. Some of them say we will get a refund, and some say we will owe. The retirement accounts that he closed out both took 20% penalties, and taxes and all that. So the 40grand that we got was after all the penalties they already took, so I'm not really sure how this will work. 

by on Sep. 24, 2012 at 8:17 PM
Replies (21-21):
MissyB1011
by Member on Sep. 28, 2012 at 9:47 AM
1 mom liked this

I had a similar situation a couple years ago. I had the federal withheld along with the penalties of early withdrawal. It was pretty right on and we only owed just a wee bit more that was deducted from our return. You may want to double check that what was withheld was federal and state or just federal. I also owed local taxes to my municipality since there wasn't an option to have that withheld.

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