I got laid off half way through the year and didn't make as much as I did in previous years, does that put me lower in the tax bracket?

Forum|Forum|1 year ago
January 17, 2025
2 replies
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Yearly salary went from about $55,000 to $30,000. I also want to know what the math is for withdrawing from 401k. How much useable money will I have after all the taxes?

Bsch4477

Employee

There are many calculators for this online. This is one from TurboTax.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

SteamTrain

Employee

For the 401k, if you are under age 59.5, then there will be a 10% penalty assessed, plus regular income taxes on the remaining...but the regular tax depends on you total income for the year in question...including that 401k distribution. If your income, for the year you take it, is low enough, there may not be any additional tax, but the 10% penalty can't be eliminated.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*