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Scenario $53$:

Olivia, age $51,$ is a military reservist called to active duty. She takes a $$40,000$ distribution from her Traditional IRA.

Wages: $$50,000$

Interest and Dividend income: $$900$

Itemized Deductions: $$14,500$

Allowable deduction for self$-$employment tax: None

Calculate:

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

AGI $($Adjusted Gross Income$)$

Taxable Income

Total Tax Liability