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14
votes
2answers
1k views

Estimated Taxes after surge in income

Last year my self-employment income was $300k and I paid about $80k in federal taxes. This year, in the first quarter, all of my business dried up and I had $0 in income. Turbo tax was advising me ...
1
vote
3answers
203 views

New 401(k) account, barely funded: can I withdraw penalty-free?

I established a new 401(k) account with my previous employer. I made a total of $600 in contributions ($100 x 6). I don't want to keep this 401(k). First, 401(k) is not my preferred investment ...
0
votes
0answers
64 views

Are HMRC (UK tax inspectors) required to give specific notice of late filing penalties?

I'm in a difficult position with respect to HMRC. My story: just before the deadline for submitting an income tax return for the tax year 2013-2014, this January (2015) I got a letter from HMRC ...
1
vote
2answers
88 views

Roth 401(k) pre-mature withdrawal: Is company match subject to tax/penalty?

Question on 10% penalty and tax on earnings for a Roth plan: For example: My contribution is $10k, with company match of $10k as well. Total earnings of ~$2k. Will I have to pay 10% penalty and tax ...
3
votes
1answer
113 views

Cash Out IRA to Pay Off Debt

I have an IRA that I haven't paid into for over 10 years. I also have a State retirement plan that I have paid into for 10 years and will continue until I retire. Besides the penalties, any reason I ...
0
votes
1answer
93 views

Does the CRA charge any penalty if you file a wrong tax return?

If you misreport a number on your tax return, will the CRA just charge you the extra money that you owe them? Or will they actually 'punish' you by charging hefty fines and penalty , and slap charges ...
3
votes
2answers
78 views

Can an early withdrawal from a Traditional IRA be done in two parts?

Let's assume that we've already determined an early withdrawal from a Traditional IRA will be taken and that it does not qualify for any of the tax-free conditions. I am aware of the lost opportunity ...
4
votes
1answer
121 views

What is the penalty for having an HSA and Medicare?

If I open a HSA my employer will contribute $1000 yearly, but I am not supposed to contribute to an HSA because I have Medicare Part A. What is the penalty for contributing to an HSA when you have ...
7
votes
2answers
2k views

Arguments on the “unconstitutionality” of income tax: What acts, etc. of Congress require payment of income tax?

I've heard that while the 16th Amendment gave the U.S. Congress the authority to enact laws for the application of an income tax on US citizens, but I've also heard that there is currently no law on ...
0
votes
1answer
691 views

Calculating underpayment penalty for Maryland state taxes

I am trying to determine if I am going to owe an underpayment penalty on my Maryland state taxes for tax year 2014. Form 4502UP (http://forms.marylandtaxes.com/current_forms/502up.pdf) states that ...
0
votes
2answers
353 views

Short Term Capital Gains tax vs. IRA Withdrawal Tax w/o Quarterly Est. Taxes

So I had to pull funds from my IRA account earlier this year. I had taxes withheld and realize there is a penalty, however, my question is two part: with penalties and taxes for early withdrawal, I am ...
0
votes
1answer
117 views

For Federal Crimes, where does the money collected from penalties go? [closed]

Today it was announced that Hewlett-Packard, HP, has to pay a $108 million dollar penalty to the Department of Justice, DoJ, for pleading guilty to bribery and money laundering. My question is, where ...
2
votes
1answer
149 views

What is the penalty for contributing to a Roth 401k when my AGI is over the limit?

Specifically, my wife has a Roth 401k and I have a traditional 401k; we married in the middle of last year, and our combined AGI for last year is well above the limit for contributions to a Roth ...
5
votes
3answers
1k views

U.S. citizen living abroad: How do I declare my income and file for taxes if I've been delinquent in filing?

I'm 26 and have lived outside the U.S. all my life. I never filed a U.S. income tax return. I know nothing about doing my taxes, and would like to file for the years that I neglected to before the ...
1
vote
1answer
40 views

Getting out from Wireless carrier contract without a penalty

I recently got a notification from T-Mobile saying that their agreement ended with my employer and they will no longer provide 15% discount to monthly service charges. Can I get out of my 2 year ...
6
votes
2answers
989 views

The five-year rule and backdoor Roth IRA conversions with non-deductible contributions

I have a Roth IRA that was opened and initially funded more than five years ago. Now that I'm earning too much money to make regular contributions, I'd like to further fund this account through a ...
5
votes
2answers
198 views

If I haven't filed in 2 years, does year 1's refund automatically apply to year 2 and prevent penalty?

I haven't filed in 2 years. But the first year I was owed a refund; let's say $1k. Year 2 I under paid. Let's say it was by exactly $1k. Will the unclaimed year 1 refund automatically cover the year ...
1
vote
1answer
141 views

What is the amount of extra interest I have to pay along with my tax due?

My total tax payable is 60803 for the financial year 2012-2013. But, TDS deducted till 31st 2013 is 50822, so I have to pay the tax due of 9981. What is the exact amount I have to pay? Is there ...
1
vote
2answers
139 views

Is it possible to take advantage of exceptions to early withdrawal penalties on a 401(k)?

As I understand, in addition to having to pay income tax on gains, early withdrawals from a 401(k) also incur a penalty. But, I also heard that there are exceptions to the penalty, e.g. if paying ...
4
votes
3answers
2k views

Employer overpaid 401k - what's my liability?

My employer overpaid into my 401k account (ie: deposited an extra paycheck's worth of money into the account). I notified the HR/payroll person of the mistake, and they said they'd "look into it", ...
1
vote
1answer
643 views

Penalties for cashing out on a SIMPLE IRA early

I want to know what are the penalties that an individual will face if they withdraw on a SIMPLE IRA outside of a hardship distribution? (Additionally) I noticed in another post someone mentioned a ...
4
votes
1answer
56 views

Can a loss in one Roth IRA make up for a gain in another when trying to withdraw early penalty-free?

I have a Roth IRA account with $9,500 current value ($500 less than I invested in it). My wife has a Roth IRA account with $5,500 current value ($500 more than she invested in it). We pay our taxes ...
4
votes
2answers
380 views

Formula to decide when to break a Certificate of Deposit (CD)?

I'm trying to create a certificate of deposit (CD) comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe ...
15
votes
2answers
2k views

Accidentally cashed out 401k instead of rolling it into an IRA. What do i do?

I've recently changed jobs (past two weeks) from an employer with a 401k to a new employer who does not offer any retirement accounts. I made a huge mistake and accidentally cashed out my 401k ...
4
votes
2answers
143 views

Accidentally opened a year term CD account, then realized I need the money sooner. What to do?

I opened a year term CD account two business days ago and just found out that I would need that money this year. I searched around the web and it looks like there is a federal law saying that a bank ...
3
votes
2answers
172 views

IRA withdrawal tax and penalties: Any additional fees or taxes for not paying up front?

I just withdraw everything from my IRA: about $68K, and I'm willing to pay taxes and penalties on that, because I'm unable to invest capital effectively (I don't wish to invest in US stocks or dollar ...
1
vote
1answer
107 views

TFSA over-contributions: How would the penalty apply in this scenario?

If my TFSA account is maxed and I want to transfer 5000 shares at $1.00 on August 2nd, 2011, and I was to sell the shares at $2.00 on January 3rd, 2012, would I have to pay tax on the gain plus 1% per ...
3
votes
3answers
191 views

Will I incur late fees, now that I am making infrequent/late payments on my auto loan?

I have been unemployed for 6 months now. I have been making infrequent payments on my auto loan. I am suppose to be paid up in May of 2012. My lien holder never sends me my balances or a bill, so I ...
5
votes
1answer
179 views

If you owe tax, how does the IRS failure-to-file penalty work?

If you owe tax, how does the IRS failure-to-file penalty work?
1
vote
1answer
274 views

How does the 1% penalty on TFSA transfers work?

The maximum annual contribution limit to a TFSA is $5000 per year. This makes it a good emergency fund vehicle. If I: transfer money out before the new $5000 contribution credit starts for a new ...