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Old 10-04-2015, 08:07 AM
 
Location: West Central Ohio
425 posts, read 236,097 times
Reputation: 628

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We live in West Central Ohio. My husband just turned 60 on September 21, but in March he turned 59 1/2 and April first we started drawing $1600 a month from his IRA. We are barely making it but we are. They are removing $160 a month in taxes leaving us $1440 to live on monthly. This is our only income, house will be paid off in 2017, drive an old car and live very frugally.

Now here is my question. When we file taxes in January what can we expect? My husband and I contemplated not having them remove the 10% taxes and take our chances but not really having an idea what the IRS will need is confusing.

There is more I could ask but will start with this. Also I do not work outside the home due to being physically handicapped.

Sincerely
Anita
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Old 10-04-2015, 08:35 AM
 
Location: MMU->ABE->ATL->ASH
9,131 posts, read 17,178,542 times
Reputation: 9982
If you have some sort of Tax Software you used last year,

Do up a Fake 2015 Return with estimated 2015 income, deductions Etc. See what your taxes will look like and if you need the 10% withheld.


Just guessing but if the IRA is your only income, you will owe no taxes on it.
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Old 10-04-2015, 08:39 AM
 
Location: Great State of Texas
86,093 posts, read 72,612,888 times
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IRA withdrawals are taxed as regular income.
You'll get a 1099-R for the year's income/taxes paid that you use to file.
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Old 10-04-2015, 08:42 AM
 
14,008 posts, read 7,465,102 times
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You can't answer the question without knowing what other income you had in the 2015 tax year.

For married filed jointly, you have a $12,600 standard deduction and $8,000 exemption. You subtract $20,600 from your income. You pulled $14,400 out of your IRA. If you had less than $6,200 of other income, you'd pay no federal income taxes at all. Anything you earn over $20,600 would be taxed in the 10% tax bracket.
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Old 10-04-2015, 09:32 AM
 
10,824 posts, read 8,084,160 times
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Ohio's state income tax might kick in.
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Old 10-04-2015, 10:06 AM
 
Location: West Central Ohio
425 posts, read 236,097 times
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Quote:
Originally Posted by GeoffD View Post
You can't answer the question without knowing what other income you had in the 2015 tax year.

For married filed jointly, you have a $12,600 standard deduction and $8,000 exemption. You subtract $20,600 from your income. You pulled $14,400 out of your IRA. If you had less than $6,200 of other income, you'd pay no federal income taxes at all. Anything you earn over $20,600 would be taxed in the 10% tax bracket.
No income for about 5 years. We had savings we were living on and when that ran out we actually used our home equity line of credit (no judging please) which is now about $23,000. (not using it and it has no set payments just interest, which we are paying the interest monthly plus to equal $100 a month) Once the house is paid off (we talked to the bank and we are in good standing) we will then pay more to get it paid down.

Haven't filed taxes since 2010, so this is why we are confused. The only extra income this year was $500 more we took out of the IRA last month and didn't have them take the taxes out.

According to what your saying above. If we continue having them take the 10% out as it stands our projected yearly income for 12 months will be under the $20,600 you stated. So would one get that back? Would sure help in paying real estate taxes.

Last edited by anitak1982; 10-04-2015 at 10:17 AM..
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Old 10-04-2015, 10:27 AM
 
Location: Los Angeles area
14,018 posts, read 17,769,401 times
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Quote:
Originally Posted by anitak1982 View Post
No income for about 5 years. We had savings we were living on and when that ran out we actually used our home equity line of credit (no judging please) which is now about $23,000. (not using it and it has no set payments just interest, which we are paying the interest monthly plus to equal $100 a month) Once the house is paid off (we talked to the bank and we are in good standing) we will then pay more to get it paid down.

Haven't filed taxes since 2010, so this is why we are confused. The only extra income this year was $500 more we took out of the IRA last month and didn't have them take the taxes out.

According to what your saying above. If we continue having them take the 10% out as it stands our projected yearly income for 12 months will be under the $20,600 you stated. So would one get that back? Would sure help in paying real estate taxes.
Yes you would get it back; if taxes have been withheld but it turns out you owe no taxes (or owe less than the taxes withheld) then you get a refund. But you have to file a tax return to get the refund.
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Old 10-04-2015, 12:25 PM
 
Location: West Central Ohio
425 posts, read 236,097 times
Reputation: 628
Thank you so much for your kind answers. Our property taxes are $500 twice a year, the refund should cover that for a year at least. This is great news for us
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Old 10-05-2015, 08:22 AM
 
Location: West Central Ohio
425 posts, read 236,097 times
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Quote:
Originally Posted by biscuitmom View Post
Wonder how one figures those?
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Old 10-05-2015, 10:20 AM
 
Location: OH>IL>CO>CT
5,255 posts, read 8,438,675 times
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Quote:
Originally Posted by biscuitmom View Post
Quote:
Originally Posted by anitak1982 View Post
Wonder how one figures those?
File an Ohio tax return.
As a resident, have you not filed Ohio tax returns before ?
See http://www.tax.ohio.gov/portals/0/fo...40_Booklet.pdf for instructions.

Page 30 has info on claiming a small ( up to $200 ) credit for retirement income included in the Federal AGI you start with on the Ohio form.

Also, IIRC, many Ohio towns have city income taxes. (which is a real nightmare for tradespeople who do business in multiple jurisdictions).
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