$******$

Scenario $5$:

Jessica, age $45,$ is a military reservist called to active duty. She takes a $$20,000$ distribution from her Traditional IRA.

Wages: $$35,000$

Interest and Dividend income: $$700$

Itemized Deductions: $$10,000$

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