I live and work in Columbus Ohio and recently was divorced. As part of the divorce, I'm receiving a lump sum QDRO of $50,000 to be used to pay off our joint debts. How much of this sum do I need to set aside for my city, school, state, and federal taxes? Last year my gross income was about $41,600 and my raise in June puts me to $43,246 annually. I was legally divorced as of April of this current year.

ANSWER

The BIDaWIZ Team's Answer:

You will owe taxes on the distribution of about $14,000 to $15,000 in based on the information you have provided. Your total income for the year would be $93,246. For Ohio state tax purposes, you would owe tax on the $50,000 QDRO distribution with $38,405 at 4.11% or $1,578 and $11,595 at 4.7% or $545. Therefore, roughly, $2,123 in state taxes. As the federal level, your in the 28% marginal tax bracket, with $42,115 taxed at 25% or $10,528 and $7,885 taxed at 28% or $2,208. Therefore, roughly $12,736 in federal taxes. Columbus has a municipal local tax rate of 2%, which may apply here as well which translates to $1,000.