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Asked 6/26/2010
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About how much would the taxes be and when are they due ? So your saying i will owe another 10% at tax time after i pay 20% up front and if so the 10% extra taxes that are due how long do i have to pay the extra taxes owed? |
Answer 1/5 - Submitted 6/26/2010
They amount of tax you'll pay depends on many variables, just like your income tax: our total taxable income, filing status, number of exemptions and deductions you claim, any tax credits you qualify for, etc. Any tax owed is due when you file your return, same as your income taxes. The more you earn in any one given year, the higher your tax liability. I have no way of knowing how large a withdrawal you're considering, you'll pay much more in taxes if your total taxable income for the year including the withdrawal is $15,000 vs someone who has a total taxable income of $150,000.
If you can't pay the taxes due in full, you'll need to pay any applicable penalty and interest.
Answer 2/5 - Submitted 7/21/2010
Answer 3/5 - Submitted 7/22/2010
Without knowing much more about your tax return than you ever want to post on the internet, it would be impossible to give a completely accurate answer to "at what rate should taxes be withheld on a withdrawal." Normally the trustees will withhold 20% federal, and this is reasonable for most people. Not accurate -- you might owe more or less -- but reasonable. If your state has an income tax, then you probably need between five and seven percent withheld for that.
Answer 4/5 - Submitted 2/1/2011
Answer 5/5 - Submitted 2/1/2011
No matter how much you owe in tax, its owed on the same day as everyone else who pays taxes on a yearly basis. The day 2010 taxes are due this year is April 18th.
If you can't pay everything owed by that date, you can ask the IRS for a payment plan. That will not make your taxes any less, but it will give you more time to pay them plus any penalties or interest that might be imposed for paying late. If you are making estimated tax payments, you would have four deadlines to meet each year, every three months on the 15th of the month: April, June, September and January.
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