$****$

Scenario $22$:

Statement: Liam retired at age $51$ and took a $$63,000$ distribution from his Traditional IRA.

Wages: $$20,000($part$-$time work$)$

Interest and Dividend Income: $$1,500$

Itemized Deductions: $$14,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The portion of the distribution subject to the $10\%$ early withdrawal penalty.

AGI, Taxable Income, and Total Tax Liability $($including the penalty$)$