$*****$

Scenario $5$:

Statement: Emily retired at age $49$ and took a $$95,000$ distribution from her Traditional IRA.

Wages: $$35,000($part$-$time work$)$

Interest and Dividend Income: $$2,800$

Itemized Deductions: $$22,000$

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$)$