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O.K. here is the story. DH has been off work for almost 2 years due to a back injury. When we filed last year I think we were in the 15% tax bracket.

We are a family of 3 (one dependent). My question is I took a 401k cashout ($4,700.00). Do you think we will owe Uncle Sam this year.

We did get the $600.00 rebate and we normally get a refund of about $1100.00 from federal and $800.00 from state. This is just a rough estimate. We do itemize our tax return.

What do you guys think!
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What do you guys think!

Not to sound harsh, but why don't you just work through the forms (or software, or tax pro) and find out the real number? All anyone here can do is guess. You haven't given us enough info to really figure it out, and the info we'd need is what you need to do your taxes anyway.

--Peter
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Peter:

I think the bigger question here is does his 1099 reflect the proper code for early (I assume) distribution. If it doesn't say 3 (I think -- it's explained on the back of the form) there will be a 10% penalty + taxes if none were taken out at the time of withdrawal.

I've gone through this. It can get messy if not done correctly.

Regards,
DWSz
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