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    PAPASYD's Avatar
    PAPASYD Posts: 7, Reputation: 1
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    #1

    Jun 20, 2013, 05:53 AM
    Ira
    My wife and I are 70 and collecting Social Security. I also have a small annual income. We have two IRA's that I would like to take in a lump sum rather than payments .
    My question: since our annual income plus the IRA's total is under the Federal tax table minimum, would we still have to pay tax on the IRA's no matter what?

    My wife and I are 70 and collecting Social Security. I also have a small annual income. We have two IRA's that I would like to take in a lump sum rather than payments .
    My question: since our annual income plus the IRA's total is under the Federal tax table minimum, would we still have to pay tax on the IRA's no matter what?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jun 20, 2013, 07:53 AM
    Exactly HOW MUCH is the IRA total lump sum distribution?
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    PAPASYD Posts: 7, Reputation: 1
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    #3

    Jun 20, 2013, 06:37 PM
    $4,600
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Jun 21, 2013, 09:30 AM
    Tell me what your social security and your other small income will be for 2013 will be and I will tell you if you will have any tax liability.
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    #5

    Jun 22, 2013, 04:17 AM
    $39,000
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Jun 23, 2013, 04:26 AM
    You DEFINITELY will have some tax liability, as your combined income exceeds the threshold that causes your Social Security to be subject to taxation.
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    #7

    Jun 23, 2013, 07:52 PM
    Thank you very much.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Jun 24, 2013, 07:00 AM
    Glad to help.

    If you break down how much is Social Security,and how much is other income, I can estimate how much tax you owe.
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    #9

    Jun 25, 2013, 04:52 AM
    SS = $30,000 None of our SS is taxable according to the worksheet
    OTHER = 9,900 with taxable interest
    AtlantaTaxExpert's Avatar
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    #10

    Jun 25, 2013, 05:48 AM
    If all of your $9,000 is INTEREST income, then I stand corrected. You will have ZERO tax liability even if you take the full $4,600 lump sum distribution from your IRA.
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    #11

    Jun 25, 2013, 09:29 AM
    $9,000 is from part time employment. $900 is interest income.
    AtlantaTaxExpert's Avatar
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    #12

    Jun 25, 2013, 03:36 PM
    Makes no difference; you still have a ZERO tax liability.
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    #13

    Jun 25, 2013, 06:13 PM
    Thank you very much, you have made my year.
    Syd C.
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    #14

    Jun 26, 2013, 07:27 AM
    Glad to help!
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