Bryan, who is 45 years old, had some surprise medical expenses during the year. to pay for these expenses (which were claimed as itemized deductions on his tax return), he received a $20,000 distribution from his traditional ira (he has only made deductible contributions to the ira). assuming his marginal ordinary income tax rate is 15%, what amount of taxes and/or early distribution penalties will bryan be required to pay on this distribution?

The amount of income tax that Bryan would have to pay is $3000 and he would not pay any early distribution penalties.

Explanation:

In this question it is being told that the surprise medical expenses which Bryan had to incurred were qualified as per the IRA that's why these were claimed as itemized deductions on his tax return. Since these expenses were qualified as per IRA distribution , no penalties would taken on it. Usually there is 10% early distribution penalty but here it is not valid. So Bryan is only required to give income tax on whole $20,000.

INCOME TAX = $20,000 X 15%

                       = $3000