My husband and I made about $98,000 last year from our employers. I expect that number to stay fairly close this year (maybe up to $103,000). I have also become a pampered chef consultant and forsee my "income" from this to be roughly $3000. Last but no least I took an early distribution from my 401K of $7000 I had 35% held in taxes from this. I am wondering if this will be enough to cover the withdrawal taxes and taxes I will be responsible for from the pampered chef income.(oh and no, we did not take the money out to stop foreclosure, college or any tax exempt reason!)

Its hard to tell, because there may also be state taxes. There is also a 10% penalty that will need to be paid.

I venture to guess that the 35% is merely a down payment of the taxes owed.

At a minimum, with the 10% penalty and state income taxes factored in, you can expect to pay AT LEAST a 33% tax bill. It CAN get as high as 50% in some high tax states like New York or Massachusetts.