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April 13, 2020
Question

I should not pay state taxes on my $50,000 withdrawal from my 403B as I paid state taxes on it before it was deposited. Do you have information?

  • April 13, 2020
  • 1 reply
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1 reply

AmyC
Employee
April 13, 2020

You get credit for all the taxes paid on your return. When you withdrew the income, you had federal and state taxes withheld. Those were estimates to apply towards your actual tax liability.

 

The $50,000 withdrawal is added to your income, job, interest, whatever income you had for the year. All income is added up, your tax liability is determined after your deductions and credits. Then all the taxes withheld, job, 403B, etc are all added together and subtracted from your tax liability.

 

If you owe state taxes, you did not have enough money withheld either at work or with the 403B or you had other income that had not been taxed, like capital gains.

 

 

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