Questions tagged [penalty]
The penalty tag has no usage guidance.
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Confused as why TurboTax asking for 2022 Tax Liability to calculate 2023 underpayment penalty
System showed that I owe tax penalty and it started asking few questions to see if it can be waived. One of the questions was 2022 Tax Liability, where it is asking me to enter line 4 from form 2210 ...
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Can I take contributions out of traditional or roth 401(k) before 59 1/2 without penalty?
Can I take contributions out of a traditional or roth 401(k) before 59 1/2 without penalty?
I'm basically looking for this table and cannot find it anywhere, please let me know if any of the below is ...
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How is the Underpayment of Estimated Tax penalty determined?
My understanding is that if you pay at least 90% of your current tax year obligations, pre-deductions, or 100%† of your obligations in the previous tax year, you avoid the penalty.
I was just sent a ...
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IRA withdraw penalties vs interest rates today
Here's a interesting point of view/question. With interest rates near 10% for loans these days - used car loans at 9.06% for someone with excellent credit - are we at a point where it makes more sense ...
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Question about the specifics of the safe harbor rules for underpayment penalties
For the safe harbor rule for underpayment penalties, you don't have to pay a penalty if:
You expect your withholding and tax credits to be less than the smaller of:
a. 90% of the tax to be shown on ...
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Need help understanding Estimated Tax payments and safe harbor rules
I have not worked for the first half of this year and have some modest dividend/interest income that would end up being less than $1000 in taxes by the end of the year, so I have not been paying any ...
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Consequences of frequent share holder loan and repayment to and from my Ontario Corporation?
Let's say I have an Ontario Corporation in Canada. My corporate fiscal year is from July 1 to June 30. I also have a personal line of credit with my personal bank and I owe $50k to the bank. The ...
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Can a single file tax as "married file jointly" to take advantage of more standard deductions?
Can a single file tax as "married file jointly" to take advantage of double the standard deductions? Why or why not?
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I withdrew contributions from a Roth IRA. Why is my tax service imposing a 10% penalty? I am only withdrawing contributions, not earned income
I received a Form 1099-R from my brokerage with box 7 (Distribution code) marked with Code J indicating that I will be paying a 10% penalty for withdrawing the money. From my understanding, I'm able ...
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Is there a grace period for getting money back out of your 401k plan?
Is there a "grace period" on getting that money back out? For example, if I put $3000 in in April, and I need that $3000 in May, can get it out before the end of the year, can I just pay the ...
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Why does First Time Abate penalty relief not apply to certain tax penalties? [closed]
(If this is not the appropriate SE for this question, I apologize and would be happy to be directed elsewhere. Thank you.)
I recently found out that I didn't declare a distribution from an inherited ...
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Should everyone who receives dividend income fill out a W-4 form reporting it to their employer?
My friend mentioned to me that he got dinged by the IRS for underpayment of estimated tax. Apparently the reason that his employer didn't withhold enough tax from his paycheck is that he received ...
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Understanding underpayment penalty: implications and how to avoid it in the future
Here is a small explanation of my situation which I hope will help to understand my question:
I am a full time employee who lives in California. Each year I get a W2 from my employee and 1099 from my ...
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Is Form 2210 broken for people with children, or am I missing something?
I'm trying to file my taxes right now, and H&R Block's tax software is simultaneously telling me I'm owed a four figure refund and owe a (modest) underpayment penalty. On digging through this year'...
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Post-hoc hardship to avoid early withdrawal penalty (US)
My wife and I took money out of our retirement accounts to pay for emergency repairs to our home in May of 2021. Unfortunately, we were not ordered to relocate or demolish, so it doesn't meet criteria ...
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