tax bracket question

[paulmars]

florida

I need to take early distribution of retirement funds (about 47k). I can spread this over 2 years. So, I think that after my 5800 std ded and 3700 exemption, my earnings and above distribution (for this year) needs to be less then 35,350, otherwise i go from 15 to 25% bracket. Is this right?

tks,
p

 

[anteater]

The top end of the 15% bracket for 2012 for a single taxpayer is indeed $35,350. But your taxable income is after the standard deduction and exemption.

Only the amount over $35,350 would be subject to the 25% rate.

 

[paulmars]

that sounds like a "yes" answer to my Q.

 

[anteater]

that sounds like a "yes" answer to my Q.

Other than I would use the phrase "taxable income" rather than "earnings and above distribution", yes.

And, unless your early distribution qualifies as an exception, don't forget the additional 10% tax for the early distribution.

http://www.irs.gov/publications/p575/ar02.html#en_US_2011_publink1000226952