asked

In November, I withdrew my entire Thrift Saving Plan (TSP) to buy a home, resulting in $78,000 withheld for taxes. My annual salary is $70,000, and the TSP withdrawal was $394,000. My tax accountant calculated that I owe $47,000 in federal taxes and $41,000 in state taxes, putting me in a 39.9% tax bracket. Is this accurate, considering the TSP money was received in November and I won't earn that much again? I invested $315,000 into my home and now lack the resources to pay the taxes.

January 30th, 2024

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