Tax help

[Rage187]

Sort of early but I had a tax question that may require some action before the end of the year.


We are building a house. I took $40,000 out of one of our 401Ks as a hardship withdrawal for the down payment. Pretty common reason and it escapes the 10% penalty for early withdrawal. I just got the check today. I know the money is now counted as income for 2013 and I need to pay income taxes on it.

They went ahead and held 10% back for federal. But I'm guessing I have another 7% coming out for SC tax + another X% for coming out for the rest of federal.



What I would like to know is:

Roughly, how much should I set aside to pay the remaining federal taxes? We are a married family of 4 (2/2), with 100,000 in annual income.

When should I pay it? When we file taxes or before the end of this year?

Should I go to an accountant to file 2013 or can I use Taxact like we have the past 5 years?

 

[fuzzybabybunny]

You're going to want to PM EagleKeeper

 

[dbk]

Taxact website states that it can handle your situation. Link

I suppose you can just calculate the amount due by subtracting out what's been withheld already.

 

[Rage187]

will do

 

[Fern]

Check Form 2210.

A quick look indicates you can just get your tax return done before 4/15 and pay the extra tax with no penalty (underpayment of estimated taxes).

If your 2013 income is the same except for the $40K just pull up last yrs tax return on your program and add in the $40k (and the extra w/h taxes), it'll will give you a good estimate of how much to set aside for payment at or before 4/15/14

Fern

 

[Rage187]

thank you all.

 

[Mandres]

Check Form 2210.

A quick look indicates you can just get your tax return done before 4/15 and pay the extra tax with no penalty (underpayment of estimated taxes).

If your 2013 income is the same except for the $40K just pull up last yrs tax return on your program and add in the $40k (and the extra w/h taxes), it'll will give you a good estimate of how much to set aside for payment at or before 4/15/14

Fern

You're too kind, that's $120/hr. advice