estimated taxes due in mail today

[GrayHare]

Of the various estimated tax due dates I've always found June 15th the most forgettable.

 

[Dash man]

I thought they were due July 15?

 

[CitizenK]

Good reminder. I just paid both my state and federal online. I agree that the June 15 deadline is forgettable. So I just looked on the IRS website, and the June 15 payment is for a two-month period only (April and May). The last payment for the year is for a 4-month period (Sept-Dec). So they really aren't quarterly payments if you want to get technical.

 

[ERD50]

Thanks for the reminder.

I'll also mention again, if you take RMDs, the simple, easy way to make estimated payments is to have them taken out of the RMD as a withholding. It can be done as a once a year withdrawal, and it still counts to the IRS the same as being done quarterly. If your RMD covers your total estimated taxes, it's "one and done".

Fidelity allows you to do this on-line for Federal, and for IL (I assume all states are covered).

I'm not taking RMDs yet, but I set this up for my MIL, and verified it all with her tax guy. A few clicks on-line at Fidelity (or other place that supports this) sure beats writing eight checks a year, and worrying if they got lost in the mail, or navigating the Fed and State sites to set up payments there.

-ERD50

 

[Dash man]

Thanks for the reminder! Just paid my quarterly taxes. Added to my iphone calendar for future years.

 

[W2R]

I don't have to do a thing. I have both the EFTPS (and the equivalent service for the State of Louisiana) set up to automatically pay them for me today by automatic deduction from my checking account. I always keep enough in checking to cover estimated taxes in case I accidently forget.

Knowing about the EFTPS is ANOTHER one of those amazing and helpful bits of information that I originally got from Audreyh1, who has posted about it for years. Thank you once again for your helpful posts, which I personally value a lot, Audreyh1.

 

[Tadpole]

I use EFTPS and got my BoA alert that the IRS withdrew mine today.

 

[Dash man]

I don't have to do a thing. I have both the EFTPS (and the equivalent service for the State of Louisiana) set up to automatically pay them for me today by automatic deduction from my checking account. I always keep enough in checking to cover estimated taxes in case I accidently forget.

I can do that for PA state taxes. I don't see that option on the IRS site.

 

[Dash man]

I don't have to do a thing. I have both the EFTPS (and the equivalent service for the State of Louisiana) set up to automatically pay them for me today by automatic deduction from my checking account. I always keep enough in checking to cover estimated taxes in case I accidently forget.

Knowing about the EFTPS is ANOTHER one of those amazing and helpful bits of information that I originally got from Audreyh1, who has posted about it for years. Thank you once again, Audreyh1.

Ahhh...thanks for the link!

 

[audreyh1]

I use EFTPS and got my BoA alert that the IRS withdrew mine today.

Yep - from different bank.

 

[aja8888]

I've missed the June payment a couple of times and made it in July. Never a word from the IRS on this.

Now I do the EFTPS thing on automatic.

 

[Sunset]

I'm still doing my manually, and I generally schedule to pay it 1 or 2 days in advance.
Our payments are fluctuating a lot yr to yr, hopefully in a few years they will be consistent.

 

[Gotadimple]

After taxes are done for the year, I estimate what I might owe and set up EFTPS for the first 3 quarterly payments. By the time I get to late December I'll know if I need to make a smaller/larger 4th Q payment.

 

[whaleknives]

. . . I'll also mention again, if you take RMDs, the simple, easy way to make estimated payments is to have them taken out of the RMD as a withholding. It can be done as a once a year withdrawal, and it still counts to the IRS the same as being done quarterly. If your RMD covers your total estimated taxes, it's "one and done". . .

I schedule EFTPS and state payments as well, in January after taxes and an annual Roth conversion.

The conversion accounts for most of my taxable income. Is there a work around that would allow me one payment rather than four, similar to the RMD withholding? Perhaps withholding from a single Roth conversion in December?

Reducing my Roth contribution isn't a factor, since the source of my tax payment is either a traditional or Roth IRA.

 

[ERD50]

I schedule EFTPS and state payments as well, in January after taxes and an annual Roth conversion.

The conversion accounts for most of my taxable income. Is there a work around that would allow me one payment rather than four, similar to the RMD withholding? Perhaps withholding from a single Roth conversion in December?

Reducing my Roth contribution isn't a factor, since the source of my tax payment is either a traditional or Roth IRA.

AFAIK, any withholding is treated by the IRS as if it was done evenly over the year.

Here's a more up-to-date source than I found at the time I started this for MIL:

https://www.kiplinger.com/article/retirement/T045-C000-S004-withhold-taxes-from-your-rmds.html

.. So if your RMD is large enough to cover your entire tax bill, you can keep your cash safely ensconced in the IRA most of the year, avoid withholding on other sources of retirement income, skip quarterly estimated payments . . . and still avoid the underpayment penalty.

They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL).

-ERD50

 

[audreyh1]

I've missed the June payment a couple of times and made it in July. Never a word from the IRS on this.

Now I do the EFTPS thing on automatic.

Do you enter in your tax software what date you paid it? That’s where it is reconciled.

 

[aja8888]

Do you enter in your tax software what date you paid it? That’s where it is reconciled.

Always.

 

[whaleknives]

AFAIK, any withholding is treated by the IRS as if it was done evenly over the year.

Here's a more up-to-date source than I found at the time I started this for MIL:

https://www.kiplinger.com/article/retirement/T045-C000-S004-withhold-taxes-from-your-rmds.html

They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL).

-ERD50

Thanks. Now all I have to do is compare earlier Roth returns against later tax payment. Inertia is powerful.

 

[jazz4cash]

Never heard of EFTPS, so thanks W2R and Audrey. So far I only need to pay quarterly taxes for the state since NFCU won't withhold. We have a pretty good state payment system but I wish they would send an email reminder ahead of time or I should probably change the auto debit to an account that holds more cash than my checking account.

 

[TrvlBug]

AFAIK, any withholding is treated by the IRS as if it was done evenly over the year.

Here's a more up-to-date source than I found at the time I started this for MIL:

https://www.kiplinger.com/article/retirement/T045-C000-S004-withhold-taxes-from-your-rmds.html

They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL).

-ERD50

Thank you! Had no idea this could be done to cover our monthly income (SS & annuity) as well. This will streamline not only the quarterly payments, but also tax documentation. 2017 taxes will be our first full year of retirement so other than investment income, other income is more or less static and all of our RMDs are scheduled for mid November.

 

[RobbieB]

Wrote the checks, stamped the envelopes and sent 'em in.

 

[marko]

I've missed the June payment a couple of times and made it in July. Never a word from the IRS on this.

Now I do the EFTPS thing on automatic.

I never pay my estimateds.

I pay the penalty hit at tax time; worth the couple hundred bucks to not be bothered until once a year. Let 'em wait.

 

[MarieIG]

The mail clerk at my office laughed at me and picked them off my desk when she was handing out paychecks. (She is used to me running after her with my envelopes on estimated tax day, usually as she is leaving for the post office at 4:30 p.m.) So, I was actually ahead of schedule. For me.

 

[USGrant1962]

I paid them yesterday. As a new early retiree, at this point I'm going with 100% of last year's payment, so paid 1/4 of last year's tax in Q1 and Q2. I suspect I'll do the same in Q3 and then do a pro-forma 2018 tax return to see where I stand.

 

[Badger]

I forgot all about it. Thanks for the reminder. Taxes have been fluctuating for a couple of years and will continue through 2019 due to RMDs in different years and capital loss carryovers. I should have a more stable tax to calculate by 2020.


Check is in the mail.


Cheers!