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Scenario $5$: IRS Levy Exception

Brian retired at age $56$ but had an outstanding tax debt. The IRS levied his Traditional IRA and he received a distribution of $$55,000.$

Wages: $$30,000$

Interest and Dividend Income: $$1,100$

Itemized Deductions: $$16,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The portion of the distribution subject to the $10\%$ early withdrawal penalty.

AGI, Taxable Income, and Total Tax Liability.