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If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments.
Use RMDs to Pay Estimated Income Taxes Other income, such as interest, dividends, capital gains, pensions and social security may be taxable and income tax withholding is not required. Taxes are still due, so, instead, taxpayers are required to make quarterly estimated tax payments.
Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59 are called early or premature distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.
Tax withholding and estimated tax Federal income tax withholding is required for distributions from IRAs unless you elect out of withholding on the distribution. If you elect out of withholding, you may have to make estimated tax payments.
Regardless of your age, you will need to file a Form 1040 and show the amount of the IRA withdrawal. Since you took the withdrawal before you reached age 59 1/2, unless you met one of the exceptions, you will need to pay an additional 10% tax on early distributions on your Form 1040.
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If its a traditional IRA, SEP IRA, Simple IRA, or SARSEP IRA, you will owe taxes at your current tax rate on the amount you withdraw. For example, if you are in the 22% tax bracket, your withdrawal will be taxed at your 22% marginal tax rate.
Distributions before you are age 59 1/2 are called Early Distributions. The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount.

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