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URL:
https://boards.fool.com/one-of-the-federal-safe-harbor-rules-is-if-you-34957131.aspx
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| Subject: Re: Possibility of current tax year underpayment | Date: 10/15/2021 5:54 PM | |
| Author: MCCrockett | Number: 133104 of 134396 | |
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One of the federal safe harbor rules is if you pay at least 100% of the taxes you owed for 2020 (110% if you’re considered high income) through withholdings by the end of 2021. The CARES Act suspended RMD for 2020. I didn't withdraw any RMD from my IRA accounts resulting in a taxable income of $38,343.00 and income tax $2,375.00. For 2021 my RMD was $141,541.00. I estimated that my tax liability for 2021 would be $34,752.00 for 2021. I scheduled quarterly payments of $8,688.00 through EFTPS. The last quarterly payment will be withdrawn from my bank account in December. I have approximately $45,000.00 in unanticipated capital gains in 2021. As I've paid significantly more than 110% of my 2020 tax liability, have I satisfied the safe harbor rules? |
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