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16 votes
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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
  • 176k
8 votes
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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
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5 votes
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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
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4 votes
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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 ...
littleadv's user avatar
  • 176k
3 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 ...
keshlam's user avatar
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3 votes
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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 (...
Stan H's user avatar
  • 7,551
1 vote

IRA withdraw penalties vs interest rates today

If you have a good nest egg and taking the withdraw won't hurt long term goals, in my eyes right now it's lower risk to just use money you have versus incur debt at crazy high rates. You are pulling ...
mhoran_psprep's user avatar

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