What is the name of your state?What is the name of your state?NM
But the pension plan was paid out in IL while living in IL.
I received a pension plan payout thru a QDRO from my ex husband. I am not 59 1/2 yet. When I received the check it had the mandatory 20% already taken out per federal tax law. I now have to claim the entire amount as income, including the 20% already taken for taxes.
My question is, how are the taxes that have already been paid dispursed? If I claim the entire amount (under 200K), it says for the amount I received, I would be in the 33% tax bracket. If you take 33% on this, plus the already 20% they have taken already for taxes, that would mean I would pay like 53% taxes. Nobody has a 53 % tax bracket. Do they take part of the 20% and put it towards the earned income tax? I realize there are penalties for taking early withdrawl. But I did contact the IRS and they said I do not have the 10% added penalty because the money was obtained thru a QDRO.
Thanks for any help in explaining this.
But the pension plan was paid out in IL while living in IL.
I received a pension plan payout thru a QDRO from my ex husband. I am not 59 1/2 yet. When I received the check it had the mandatory 20% already taken out per federal tax law. I now have to claim the entire amount as income, including the 20% already taken for taxes.
My question is, how are the taxes that have already been paid dispursed? If I claim the entire amount (under 200K), it says for the amount I received, I would be in the 33% tax bracket. If you take 33% on this, plus the already 20% they have taken already for taxes, that would mean I would pay like 53% taxes. Nobody has a 53 % tax bracket. Do they take part of the 20% and put it towards the earned income tax? I realize there are penalties for taking early withdrawl. But I did contact the IRS and they said I do not have the 10% added penalty because the money was obtained thru a QDRO.
Thanks for any help in explaining this.