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 ...
Michael Borgwardt's user avatar
40 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 ...
JTP - Apologise to Monica's user avatar
31 votes

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 think you're misunderstanding Code J. It doesn't mean "this withdrawal is definitely subject to a 10% penalty", it means "neither of the two exceptions to the penalty apply" (Q - ...
nobody's user avatar
  • 1,878
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?
Dheer's user avatar
  • 57.1k
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 ...
Ben Miller's user avatar
  • 116k
22 votes
Accepted

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 ...
Justin Cave's user avatar
  • 27.3k
16 votes
Accepted

Confused as why TurboTax asking for 2022 Tax Liability to calculate 2023 underpayment penalty

Line 4 is "current year tax". Notice that TT is asking about 2022, last year. So it is asking about the 2022 tax liability. This is to determine whether the "safe harbor" exception ...
littleadv's user avatar
  • 174k
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 ...
Dustin's user avatar
  • 741
11 votes
Accepted

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:...
RonJohn's user avatar
  • 50.7k
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 ...
D Stanley's user avatar
  • 135k
9 votes
Accepted

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 ...
Craig W's user avatar
  • 15.9k
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 ...
littleadv's user avatar
  • 174k
8 votes
Accepted

Need help understanding Estimated Tax payments and safe harbor rules

Update: I see what you're saying. You're saying that the tax based on annualized income in the first two quarters was more than $0 but less than $1000, but you you didn't pay 90% of the appropriate ...
user102008's user avatar
  • 17.2k
7 votes
Accepted

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 ...
Joe's user avatar
  • 35.8k
7 votes
Accepted

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 ...
Andy's user avatar
  • 1,448
7 votes
Accepted

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 ...
Joe's user avatar
  • 35.8k
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 ...
Ben Miller's user avatar
  • 116k
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. ...
littleadv's user avatar
  • 174k
6 votes
Accepted

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.
NL - Apologize to Monica's user avatar
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 ...
TripeHound's user avatar
  • 9,171
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.
JTP - Apologise to Monica's user avatar
6 votes
Accepted

Can a single file tax as "married file jointly" to take advantage of more standard deductions?

As the other answer states, tax returns are filed under the penalty of perjury. This is governed by the 26 USC Sec. 7206 (Title 26 of the US Code is also known as the "Internal Revenue Code",...
littleadv's user avatar
  • 174k
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 ...
BrenBarn's user avatar
  • 24k
5 votes
Accepted

Can I take contributions out of traditional or roth 401(k) before 59 1/2 without penalty?

No, you cannot take contributions out of traditional 401(k) or IRA accounts without penalty. Since it's a pre-tax account, allowing you doing that would let you shift taxes from years of high income ...
littleadv's user avatar
  • 174k
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 ...
flareartist's user avatar
4 votes
Accepted

Withholding for unexpected Short-Term Capital Gains and Penalties

The safe harbor provision is based on the tax you or the prior year. So in 2016 this helped you as your tax was substantially increased from 2015. However, by the same token in 2017 your safe harbor ...
Eric Johnson's user avatar
  • 2,427
4 votes
Accepted

Taxes on Roth IRA earnings withdrawals <59.5 but >5 years

Yes, there are taxes and penalty on that withdrawal of earnings. For a withdrawal to be a "qualified distribution", both of the conditions must be true: 1) Roth IRA must be open for at least 5 years, ...
user102008's user avatar
  • 17.2k
4 votes

Is it legally binding in the UK to declare penalty charge notice issued by the council to the insurer?

To be certain you'd have to check the policy documents of the specific insurer, or just ask them. However large insurance comparison sites only ask about motoring convictions and penalty points, and a ...
GS - Apologise to Monica's user avatar
4 votes
Accepted

HSA and Medicare: what if I get laid off?

First, I want to restate some of the premises of your question (which are correct): Medicare coverage disqualifies an individual from being eligible to contribute to an HSA. If you delay enrollment ...
Ben Miller's user avatar
  • 116k
4 votes
Accepted

Penalty or Fee for Filing a Return, When a Refund Is Due

I'll get a refund, so my guess is that I won't owe tax penalties on taxes I owe, since I don't owe any taxes for that year? Correct, penalties/interest are for those who failed to pay what was due ...
Hart CO's user avatar
  • 70.5k

Only top scored, non community-wiki answers of a minimum length are eligible