|
|
03-04-2019, 05:46 AM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: dubuque
Posts: 1,174
|
best way to pay taxes
I was just curious as to which way people on the site pay taxes. credit card, ach, snail mail? I have been efiling for quite a few years, but have always used snail mail to make the estimated and final payments. what do you use? thanks
frank
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
03-04-2019, 05:59 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
|
I use ach and have never had a problem. Credit cards have too high a fee that takes away the benefit of the points I would earn using them. I don’t send checks in the mail unless I have to.
|
|
|
03-04-2019, 06:10 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
|
I use ACH to make my estimated tax payments, but I print out and mail forms in April with a check for the regular returns. No e-file for me on the main returns.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
03-04-2019, 06:31 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2011
Posts: 8,368
|
Tried I.O.U.s to no avail.
(Naah, we e-file)
__________________
"Exit, pursued by a bear."
The Winter's Tale, William Shakespeare
|
|
|
03-04-2019, 07:44 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
|
For my return, I provide the routing and account numbers for our bank account and they pull what we owe or push us a refund.
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
03-04-2019, 07:51 AM
|
#6
|
Recycles dryer sheets
Join Date: Jul 2017
Location: Pittsburgh
Posts: 300
|
Quote:
Originally Posted by pb4uski
For my return, I provide the routing and account numbers for our bank account and they pull what we owe or push us a refund.
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
|
What a great idea! Much easier than doing estimated taxes. Thanks.
__________________
Retired from FT j*b 2017 @ 58, consulted PT then fully retired 2019 @ 60
AA: 54/41/5 | no pension
Into: spreadsheets, botanical art, fitness, IPAs, learning to play the piano, reading
Mantras: Carpe diem & Gratitude
|
|
|
03-04-2019, 07:53 AM
|
#7
|
Full time employment: Posting here.
Join Date: Mar 2008
Posts: 968
|
We pay via EFTPS as well as the state site. We set up the first 3 quarters to automatically get paid, and then adjust and set up the 4th quarter early Dec. IF we owe in April, we set that up EFTPS as well.
|
|
|
03-04-2019, 08:09 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
|
Quote:
Originally Posted by pb4uski
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
|
I do this for my (snake-bit) friend with his inherited IRA's RMD. He doesn't need the RMD as cash, but it greatly helps cover the taxes on the taxable investment income from the same inheritance the IRA was part of. It sometimes but not always keeps him in a "safe harbor," and avoids the added trouble of having to make an estimated tax payment. Because the state income taxes are lower than the federal ones, I can always make sure he gets into one safe harbor if I can't get him into both.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
03-04-2019, 08:15 AM
|
#9
|
Recycles dryer sheets
Join Date: Mar 2010
Location: Just south of Rochester
Posts: 119
|
I find their web site the most convenient for paying quarterly estimates.
https://directpay.irs.gov/directpay
|
|
|
03-04-2019, 08:27 AM
|
#10
|
Full time employment: Posting here.
Join Date: Aug 2014
Posts: 584
|
Quote:
Originally Posted by pb4uski
For my return, I provide the routing and account numbers for our bank account and they pull what we owe or push us a refund.
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
|
Can this be done with a Roth? I know you can ask for them to withhold even though it is not suppose to be a taxable event. Odd I know, but just curious how far this can stretch! What about a regular stock sale from outside an IRA?
|
|
|
03-04-2019, 09:34 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by pb4uski
For my return, I provide the routing and account numbers for our bank account and they pull what we owe or push us a refund.
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
|
+1
No estimated tax payments for me, as I pay as I go with the withholding on my IRA withdrawals. Pretty much painless, although I tend to overpay then get my money back.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
03-04-2019, 09:50 AM
|
#12
|
gone traveling
Join Date: Apr 2011
Posts: 3,375
|
I prefer paying via IRA withdrawal near end of year.
|
|
|
03-04-2019, 10:18 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
|
Doesn't the "use the TIRA to pay taxes" strategy only work if it doesn't kick you into the next tax bracket?
__________________
FIRE'D in July 2009 at 51...Never look back!
|
|
|
03-04-2019, 11:14 AM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,043
|
Quote:
Originally Posted by scrabbler1
I do this for my (snake-bit) friend with his inherited IRA's RMD. He doesn't need the RMD as cash, but it greatly helps cover the taxes on the taxable investment income from the same inheritance the IRA was part of. It sometimes but not always keeps him in a "safe harbor," and avoids the added trouble of having to make an estimated tax payment. Because the state income taxes are lower than the federal ones, I can always make sure he gets into one safe harbor if I can't get him into both.
|
Your friend was bit by a snake? Are they ok?
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
|
|
|
03-04-2019, 11:23 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
|
Quote:
Originally Posted by kgtest
Your friend was bit by a snake? Are they ok?
|
LOL no (about the snake), but the jury is still out (about his being ok). I was referring to the friend I have written about a lot in the last 5 years in this thread:
http://www.early-retirement.org/foru...ant-71478.html
Whenever he does something really weird or dumb, or something really weird or dumb happens to him, I vent a little and write about it there. Seems to have a decent following. You are welcome to read the entire saga.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
03-04-2019, 11:27 AM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
|
Quote:
Originally Posted by RockyMtn
Doesn't the "use the TIRA to pay taxes" strategy only work if it doesn't kick you into the next tax bracket?
|
I think what the others are writing about (I know it is what I mean) is the use of TIRA withdrawals one would be making anyway to pay existing taxes which are going to come due. I'm not sure anyone is suggesting that someone make an additional withdrawal from a TIRA to pay existing taxes because that act itself will increase one's taxes.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
03-04-2019, 11:28 AM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,139
|
eftps.gov - I schedule all withdrawals by IRS for estimated taxes and the final 1040 payment.
There was a recent thread discussing payment options.
We aren't withdrawing from IRAs yet.
__________________
Retired since summer 1999.
|
|
|
03-04-2019, 11:48 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,176
|
Quote:
Originally Posted by pb4uski
I used to do estimated taxes via EFTPS, but now just do a tIRA withdrawal with 99% withholding as part of my year end tax planning since the IRS counts withholdings as if paid throughout the year.
|
Thanks - I was looking at doing quarterly estimated taxes for interest/dividends/cg income, but since so much of my CGs happen towards the end of the year, it makes sense for me to do this with my 401K.
Now back to the original question - if I owe taxes Fed or state taxes in April, I mail a check.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
|
|
|
03-04-2019, 12:58 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
|
Quote:
Originally Posted by RockyMtn
Doesn't the "use the TIRA to pay taxes" strategy only work if it doesn't kick you into the next tax bracket?
|
Yes, but in my case it is all part of my plan for withdrawals. So for example, let's say you plan to draw $50k for the year and expect your estimated taxes to be $3k. Just do a $50k withdrawal and have 6% withheld... they'll take out $50k... send the IRS $3k on your behalf and deposit $47k to the account that you designate.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
03-04-2019, 01:02 PM
|
#20
|
gone traveling
Join Date: Apr 2011
Posts: 3,375
|
Quote:
Originally Posted by RockyMtn
Doesn't the "use the TIRA to pay taxes" strategy only work if it doesn't kick you into the next tax bracket?
|
In 2017, I made a withdrawal & had taxes taken out. Then before I filed, I did a rollover with other funds to pay back into the IRA. It saved making quarterly payments through the year before I had an idea of what our taxes would be. Never have made a Q payment & never intend to.
If you're doing big enough withdrawals anyway, or have to make RMD's big enough, you don't have to deal with the rollover thing.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|