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103 votes

Bought stock at higher price than current price

I don't understand is it possible to buy stock at higher price than current price? This is a very common misunderstanding. Stocks do not have a "current price" that you can buy them for. Any "stock ...
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41 votes

Bought stock at higher price than current price

I set 980 instead of 880 and it is fully executed. Suppose I'm on the other side of your transaction. I might own a stock worth around that $900 price, but have a $980 target. In other words, I'm ...
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27 votes

Bought stock at higher price than current price

The limit order will match to best offer on books. Let's say the best sell price was 900, it will match to that. You will pay 900. Read How do exchanges match limit orders?
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  • 56.6k
26 votes
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Arguments on the "unconstitutionality" of income tax: What acts, etc. of Congress require payment of income tax?

No, it is not true. That is one of the many "conspiracy theorists'" claims to not pay taxes, and is considered as frivolous (i.e.: punishable by very harsh penalties and criminal prosecution). ...
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  • 131k
22 votes
Accepted

Estimated Taxes after surge in income

You will not necessarily incur a penalty. You can potentially use the Annualized Income Installment method, which allows you to compute the tax due for each quarter based on income actually earned up ...
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  • 23.8k
22 votes

Can I close my money in HSA and transfer it to another bank account and use it for non-medical purpose?

When you put money into the HSA, you didn't pay any tax on that amount. Now that you want to take money out, if you don't have any medical expenses to offset the amount you are withdrawing, you will ...
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22 votes
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Understanding underpayment penalty: implications and how to avoid it in the future

Option 1 is that you're generating enough capital gains, interest, and dividends from your brokerage account that you want to increase your withholdings to account for that. Option 2 is that the W-4 ...
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  • 20.4k
17 votes
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401(k) forfeited and check issued. What can I do to avoid penalty?

If the check was payable to you, you had 60 days to deposit to an IRA. But, it needs to go into the same type of IRA as the 401(k) was. i.e. if the 401(k) was traditional, it goes into a traditional ...
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14 votes

Bought stock at higher price than current price

I don't understand how it is possible to buy stock at a higher price than current price? The price listed on a stock ticker is not an absolute "price." It is simply the price at which the stock ...
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  • 731
13 votes

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

To supplement @littleadv's answer, I discovered that our friends at both Skeptics Stack Exchange and Politics Stack Exchange have also addressed this question — at least a few times that I could ...
11 votes
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Can you be penalized for setting an arbitrarily high number of allowances on your W-4?

You may have to pay a penalty of $500 if both of the following apply. What the IRS really cares about is you not withholding enough, so that you send them a big check (EDIT: during tax season). https:...
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  • 49k
11 votes

401(k) distribution tax calculation

I'm paying tax on the tax penalty? No, you're paying tax on the amount withdrawn to cover the tax. If you withdraw $31,250, you'll pay a tax of $31,250 * 20% = $6,250, netting $25,000. This process ...
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  • 116k
8 votes

How far does the IRS usually go when they uncover unreported income?

In how much trouble can I get exactly if the IRS finds out? I understand that there's a 6 year statute of limitations on criminal charges and no limitation at all on fraud. Is this considered ...
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  • 131k
8 votes
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Implications of withdrawing Roth IRA contributions before age 59?

Can I withdraw up to $27,500 without any fees/penalties/taxes/implications? Absolutely. For the details see Form 8606 - Nondeductible IRAs, which you'd file if you took a Roth IRA distribution. In ...
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  • 14.7k
7 votes

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

Yes, it is possible. Several things to remember: Penalty free withdrawal is for contributions only. Employee match is going to the Traditional (non-Roth) 401k Withdrawing from your retirement ...
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  • 131k
7 votes
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Under the Affordable Care Act, do I get penalized if my dependents don't have insurance for the time they are not in the US?

In general, there are some exemptions that may apply to your situation, but may not, depending on the exact specifics. In particular the two exemptions that seem relevant: If your wife and son are ...
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  • 35k
7 votes
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529 plan withdrawal penalties

Your friend would have only been liable for a tax penalty if he withdrew more 529 money than he reported for qualified expenses. That said, if he took the distribution in his name, it triggers a ...
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  • 1,408
7 votes
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Should everyone who receives dividend income fill out a W-4 form reporting it to their employer?

You certainly can use the W-4 to have more money withheld. This would be appropriate if you had regular income that was beyond that of your employment - for example, if you have $250k invested in a ...
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  • 35k
6 votes

Roth 401k withdrawal rules

Does my plan make sense or am I missing something You're missing something. The match is always pre-tax and goes into the "traditional" part. Withdrawing it will trigger income tax + 10% penalty. ...
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  • 131k
6 votes

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

There is no Roth 401(k) match. Or to be clear, when an employee deposits to a Roth 401(k), the company match goes into the traditional, pre-tax 401(k) account. That money is subject to both tax and ...
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6 votes

Under what circumstance will the IRS charge you a late-payment penalty for taxes?

The IRS provides a little more information on the subject on this FAQ: Will I be charged interest and penalties for filing and paying my taxes late?: If you did not pay your tax on time, you will ...
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6 votes
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Are prepayment penalties for mortgages normal?

It used to be much more common, particularly for sub-prime loans. If you do run into someone offering a loan with a prepayment penalty, you should certainly consider other options.
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6 votes

Bought stock at higher price than current price

Now let's say i got that stock in my account, then do i get any penalty for buying it higher price? There's no "penalty" involved (at least in how I would interpret that term). If you had entered ...
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  • 9,037
6 votes

Whats the penalty for withdrawing from my Roth IRA when I day trade with it?

You are able to withdraw deposits tax-free. Any earnings are taxed, and a penalty may apply. The "day trading" has nothing to do with it.
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5 votes
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New 401(k) account, barely funded: can I withdraw penalty-free?

If you withdraw the money, regardless of how small the balance is, the IRS will still insist you pay a 10% penalty when you file your taxes (assuming you're under 59 1/2). Your 401K plan provider ...
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  • 3,795
5 votes

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

You can transfer 401(k) funds from a previous employer to an IRA, and invest it as you wish. That $600 should go to the current 401(k) or IRA. Edit - OP has edited his question. I agree with him ...
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5 votes

Difficult time understanding 1040-ES and Late Payments Penalties

The answers to most of your question are in IRS Publication 505, from which my answers are adapted. If you make quarterly payments of Estimated Taxes, do you also file the regular 1040 on April of ...
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  • 23.8k
4 votes

Can I deduct penalties for late IRS filings?

I'm assuming you are in the USA, if so... According to IRS Publication 535 Penalties. Penalties on underpaid deficiencies and underpaid estimated tax are not interest. You cannot deduct them. ...
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  • 51.6k
4 votes

How Does The IRS Structure Payment Plans If I Owe Subjectively High Taxes?

It sounds like you are saying the taxes you owe outweigh your liquid assets. Also without knowing the details, it is a little difficult to give you specific advice. (What was this property you two ...
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