AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Hi,
I was recently displaced from my job and will have severance until May 2010. I currently have some 401k loans and will continue to pay on them until my severance is over. At that time I was told they would be ocnsidered as a distribution if not paid at that time. How would I figure out how much taxes would be owed on it. I calculated I would have a balance of about 12978.00 at that time.
Thank you so much~!
Answer Angela,
You would be subject to a penalty of 10% of the amount of the distribution. Federal taxes would be at your marginal rate, which can vary from 10 to 35% depending on your filing status and taxable income level. In addition, you may be subject to state taxes if your state has an income tax. This would also be at your marginal rate, most likely 4-8%
