How much income tax would I pay on $8000.00.?

as a loan, nothing

If you take a loan, there's no tax if you pay it back on schedule. Otherwise there would be an $800 penalty plus income tax at whatever your marginal bracket is.

The Tax Lady is correct. A loan isn't taxable. The problem I often see though is that people take out a loan and then lose their job before the loan is paid back, then they get hit with the tax, plus the 10% penalty.

If you were in the 25% tax bracket, you'd pay $2,000 in regular tax plus $800 for the penalty which would total $2,800. But, as long as you've got a loan and you still have the job, the tax is zero.

About not taking tax advice on the internet: It's okay to ask questions. Half the time I suggest "go see a professional" also. But in fairness, there are a number of us who answer these questions (like Tax Lady but there are others) who have experience and training and will give a good and thoughtful answer.

The Tax Lady got it right; loans are not taxable. If you default on the loan, the amount you failed to pay back becomes taxable, and a 10% IRS early withdrawal penalty will apply if you're under age 59 1/2.

Hope that helps.

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DISCLAIMER: While the information in this response was obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The opinion voiced in this answer is for general information only and it shall not be construed as tax, legal, or investment advice for any individual, nor shall it be considered a solicitation for business. Questioners are urged to consult with their professional advisers before making any decisions regarding their finances.

Bradley Mann, CFP®, EA, BCE, CFS, AAMS

Certified Financial Planner Practitioner

Enrolled Agent | Admitted to Practice before the IRS

Board Certified in Estate Planning

Hi,

Would you have another income to file or just only this 401K?

If just only this 401K is your income for the year, then you have to pay 10% tax on it if your age is not 59 1/2.

If you file as single, no dependent, then 8,000 - 9350 = 0. You do not owe income tax but you owe 800 for 401k early distribution.

If you have another income, add them together then minus - 9350, the rest is your taxable income.

Find your tax liability in page 74 of this link :

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

You will have your tax liability + additional tax 10% = your total tax.

$0.

Loans are not taxable.

If you quit or leave your job BEFORE you pay it back, then it's a distribution and taxable.

The Yahoo! Answers forum may be the worse place to get tax advice. You have no way of knowing if it is true.

If you use the info and it is wrong, it is only you who have to pay the fines, penalties, interest and the taxes.

You need to talk to a Certified Public Accountant who SPECIALIZES in taxes. That is a CPA tax specialist.

That way you will have help if the IRS audits you.

Good luck.

I am 62 years old and have made enough mistakes taking on special circumstances in preparing my own taxes. I have learned it is cheaper to get specialists to help you answer tax questions. Some are easy to understand, but some are not.

I have also learned you can sometimes get the best advice for free from tax preparers.

And remember, the IRS gives out the Wrong advice almost 50 % of the time and if they do, it is still your fault. How's that for a system that screws you then you have to pay the fines, penalties and interest?

GET A QUALIFIED CPA tax specialist. I am serious

none if you pay it of as scheduled. that's the beauty of it.