Regina is a 45-year-old supervisor for a communications company. She files taxes as married filing separately. She withdrew $50,000 from her tax-deferred retirement account to pay off her loans. Regina's taxable income for that year was $100,040, excluding the $50,000 early withdrawal from her retirement account.
a. Use the tax computation worksheet shown to calculate Regina's tax had she not made the early withdrawal.
Section C - Use if your filing status is Married filing separately. Complete the row below that applies to you.

b. Use the same worksheet to calculate her tax with an increase in her taxable income of $50,000.
c. How much more in taxes did she pay because of the early withdrawal?
d. What was her early withdrawal penalty?

Transcribed Image Text:

Tax Subtract (d) from (c). Enter the amount Multiplication Mutiply (a) by (b) Taxable income Subtraction Enter the result here and If line 43 is- At least $100,000 but not over $100,150 S Over $100,150 but not over $178,850S Over $178,850 from line 43 amount amount on Form 1040, line 44 2896 (28) | $ $ 5,628.00S | | 33% (33) $10,635.50 35% (35) $ $14,212.50