How much tax is owed on this Roth IRA withdrawal (10 points)?

None. You can withdraw your original contribution without tax or penalty.

Using the above enclosed information for this GUESSTIMATE would be NO taxable amount would have to be reported on the correctly completed 1040 income tax return for the tax year of the distribution.

The 1099-R form that will be received after the end of the year that will be entered on the 1040 income tax return during the filing season will have the information that will have to use to correctly report the distribution amount on the income tax return.

You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). Refer to Publication 590, Individual Retirement

http://www.irs.gov/publications/p590/index.html

Chapter 4 Roth IRAs

Are Distributions Taxable?

What Are Qualified Distributions?

Additional Tax on Early Distributions

Ordering Rules for Distributions

How Do You Figure the Taxable Part?

You may have to include part of other distributions in your income. See Ordering Rules for Distributions , later.

Hope that you find the above enclosed information useful. 06/24/2012

you will not owe capital beneficial factors. somewhat, your IRA distribution would be taxed as familiar income. in step with 2011 figures, in the journey that your purely income grow to be a $10K IRA distribution, you won't be able to be claimed as a based, and you're actually not married submitting a joint return, the 1st $9500, isn't taxed. So, you may owe $50 in income tax (10%) plus the $1000 penalty.

30/40 x 15,000 = 11,250. So, 3,750 is taxable income. He's in the 15% tax bracket, so multiply 3,750 by 15%. Increase the tax by 10% to reflect the early withdrawal penalty.