Jhanvi is a 40-year-old executive for a department store. She files taxes as head of household. She needed to withdraw $45,000 from her tax-deferred retirement account to put a down payment on a new condominium. Jhanvi's taxable income for that year was $110,550, excluding the $45,000 early withdrawal from her retirement account.
a. Use the tax computation worksheet shown below to calculate
Jhanvi's tax had she not made the early withdrawal.
Section D - Use if your filing status is Head of household. Complete the row below that applies to you.

b. Use the same worksheet to calculate her tax with an increase in her taxable income of $45,000.
c. How much more in taxes did she pay because of the early withdrawal? d. If Jhanvi paid a 10% early withdrawal fee, what was her early withdrawal penalty?

Transcribed Image Text:

Tax Subtract (d) from (c) Taxable income Subtraction Enter the result here and Enter the amount from line 43 MultiplicationMultiply (a) by (b) If line 43 is- amount amount on Form 1040, line 44 At least $100,000 but not over $112,650 x 25% (.25) $ 4,937.50 $ Over $112,650 but not over $182,400 x 28% (.28) | s 8,317.00 Over $182,400 but not over $357,700 x 33% (33) $17,437.00 Over $357,700 x 35% (.35) $ 24,591.00$