Tax On Using IRA For First Time Home Purchase

[philipk65]

Hi, (California)

What would the tax be on using the $10,000 from your IRA for 1st time home buyers?

I know I'm not subject to any penalties.

I can't figure it out from the IRS publications.

Also, what form(s) do I need to fill out to file next year?

Thanks! Kevin

[davew128]

Originally Posted by philipk65

Hi, (California)

What would the tax be on using the $10,000 from your IRA for 1st time home buyers?

The same as it is for $10,000 from an IRA for non 1st time home buyers with your income, deductions, and filing status.

Also, what form(s) do I need to fill out to file next year?

Form 5329

[LdiJ]

Originally Posted by philipk65

Hi, (California)

What would the tax be on using the $10,000 from your IRA for 1st time home buyers?

I know I'm not subject to any penalties.

I can't figure it out from the IRS publications.

Also, what form(s) do I need to fill out to file next year?

Thanks! Kevin

It depends upon your marginal tax rate. However, since you are a first time homebuyer you would also be eligible for the 8000.00 refundable tax credit, (as long as you close before 12/1/2009) therefore that could certainly offset your tax on the IRA distribution.