Tax Advice Needed

Soapy · Mar 5, 2007

What is the name of your state? Louisiana

This year I withdrew from my retirement account due to losing my job. It is classified as an early withdrawal an subject to a 10% penalty since my age is 53. The trouble is this withdrawal caused my adjusted gross income to be nearly twice what is is normally, thus any deductions like medical expenses etc... would have to be quite large for me to reduce my taxes by itemizing. Any advice as to how i can reduce my tax burden would be greatly appreciated.

LdiJ · Mar 5, 2007

Soapy said:
What is the name of your state? Louisiana

This year I withdrew from my retirement account due to losing my job. It is classified as an early withdrawal an subject to a 10% penalty since my age is 53. The trouble is this withdrawal caused my adjusted gross income to be nearly twice what is is normally, thus any deductions like medical expenses etc... would have to be quite large for me to reduce my taxes by itemizing. Any advice as to how i can reduce my tax burden would be greatly appreciated.

It would probably be in your best interest to use a professional preparer this year. You may be able to exclude some of the amount from the penalty (for example if you used some of it to pay for health insurance while unemployed) and there may be additional credits or deductions that you may be entitled to receive that you are overlooking. A tax professional can best assist you because you can be face to face asking and answering questions.

Tax Advice Needed

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Soapy

Junior Member

LdiJ

Senior Member

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