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Scenario $4$: Unreimbursed Medical Expenses

Emily retired at age $54$ and took a $$30,000$ distribution from her Traditional IRA. She had $$35,000$ in unreimbursed medical expenses $(10\%$ AGI threshold applies$).$

Wages: $$25,000$

Interest and Dividend Income: $$600$

Itemized Deductions: $$20,000$

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.