Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121478  
Subject: Re: Estimated Tax Payments Date: 5/31/2012 2:58 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
My wife and I are retired. As of today, and at least until December 2012, I have had more funds withheld from my Social Security payments than needed to settle my income tax bill next April. But in Q4, I will have substantial taxable income (mandatory IRA withdraw from my IRA and probably a partial Roth conversion from my wife's IRA).

The tax prep software says pay $X each quarter. I can do that, but wonder if there is any reason to or penalty for waiting since all the income that will cause the need for payment actually will happen in December.


The tax prep software says pay $X each quarter because either you didn't use the tools to calculate estimates using annualized income or they weren't included in the software you are using. You do not have to pay estimated taxes until you have received the income being taxed, so you can wait until the final estimate to pay any additional tax due on income received in Q4. You might want to look online for an annualized income estimated tax calculator. Among others, edcosoft, who posts here occasionally, makes a good one.

Ira
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Implications of the Ballad of Ted Plotz
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement