How much money can I withdraw from my IRA and offset it with the basic single tax deduction given on my tax return?

I am fully disabled at age 57 1/2 with no other income other than Social Security disability, which I know is not taxable. How much money can I take out and offset it with the standard tax deduction given on the 1040 form I file? I already took out $4,500 from it this year, but I don't know how much I can withdraw and offset it with my standard deduction on my year-end taxes. I also have mortgage interest and home owner property taxes I use as a deduction.

IRAs, Taxes
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June 2017

Your question shows that you are confused about your federal income taxes.   If you claim the standard deduction then you can't deduct mortgage interest or property taxes which are itemized deductions.  You can only have one or the other, not both--either your standard deduction or the combined total of your itemized deductions.  I would recommend checking your 2016 tax return to see which applied in your case, as that will likely also apply in 2017.  My guess is that you aren't actually deducting your mortgage interest or property taxes even though you think you are, because your combined itemized deductions as a disabled person are very unlikely to exceed your standard deduction unless you are making incredibly large charitable contributions--which seems very unlikely also.

If you withdraw money from a non-Roth retirement account then it is taxable, period, regardless of what deductions you claim.  You didn't say if you were married or not so it is unclear what your tax bracket is, but it is probably around 15%.  Therefore, if you withdraw 4500 from any non-Roth retirement account, you will pay 675 in federal taxes and some other percentage in state taxes depending upon your state of residence.  You may also end up paying taxes on your social security disability because your total income will be increased, plus you will get fewer tax credits.  So the total tax bill altogether is probably close to one thousand dollars.  This is assuming that you can get a waiver of the 10% penalty for early withdrawal due to your disability, since you aren't yet 59-1/2.  The IRS usually grants such waivers but not always.

June 2017