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 - ...
- 1,878
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 ...
- 16.9k
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",...
- 166k
4
votes
Can a single file tax as "married file jointly" to take advantage of more standard deductions?
NO. Read the line above your signature on the tax return. "Under penalties of perjury ..."
- 1,718
4
votes
Accepted
Consequences of frequent share holder loan and repayment to and from my Ontario Corporation?
You'll probably want to talk to a tax accountant.
In any case, you'll need to pay interest (5% starting this August), which is taxable income to the corporation. So you'll save at most approx. half ...
- 166k
3
votes
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?
It is of course not your correct status, so that would mean you would face fines and ...
- 136k
3
votes
Accepted
Question about the specifics of the safe harbor rules for underpayment penalties
For b. does this means line 24 (Total Tax) on my prior year's 1040?
For the most part. Form 2210 has slightly different inputs that might result in a different output than line 24, but for most (...
- 6,508
2
votes
IRA withdraw penalties vs interest rates today
Biggest concern: There isn't just the penalty. You're also giving up tax-advantaged growth of that money in the IRA, which depending on your age may be a large additional cost.
Some retirement plans ...
- 43k
1
vote
Is there a grace period for getting money back out of your 401k plan?
It sounds like your core concern is about tax brackets. There's an easy way to save this. Maybe.
If you are in a low tax bracket right now, and your employer 401(K) permits Roth, then it may be very ...
1
vote
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?
Maybe. It depends on the options available with your 401(k) plan.
Back before there were Roth accounts you had the option of ...
- 136k
1
vote
Is there a grace period for getting money back out of your 401k plan?
For a 401(k), probably not, since most 401(k) contributions also have an employer match, and the deduction for the contribution is baked into your paycheck for that period. Otherwise you could "...
- 131k
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