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Old 06-04-2014, 07:09 PM   #21
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I don't send in estimated payments and just pay the penalty and interest. It's small. These past five years I've made more keeping the money in the market than what I pay in penalty, interest and additional capital gains tax.

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Old 06-04-2014, 08:03 PM   #22
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Most of my income is IRA withdrawals, I have a set percentage withheld at each withdrawal. With both Fidelity and Vanguard you have to answer that question with every withdrawal.

Both DW and I are drawing SS. We have a set percentage withheld from each direct deposit.

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Old 06-04-2014, 08:29 PM   #23
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All our income (pension and withdrawals from IRA) is taxed as ordinary income. We have taxes withheld and get a refund.
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Old 06-05-2014, 04:05 AM   #24
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We pay quarterly estimates, but our income is all portfolio based.
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Old 06-05-2014, 12:17 PM   #25
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I pay quarterly estimated taxes. I use the Turbo Tax Taxcaster app to determine how much to pay in Fed taxes. In CA I use their on-line calculator. I hate paying penalties.
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Old 06-05-2014, 12:25 PM   #26
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No withholding on pension or social security or part time job. Just sit down four times a year and deal with it. Most years I just do safe harbor (send in a total amount equal to last years total tax liability) regardless what I may owe.
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Old 06-05-2014, 01:56 PM   #27
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Have no pension to withhold from. Do quarterly estimated payments.
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
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Old 06-05-2014, 02:47 PM   #28
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All of my income comes from investments held at Vanguard and one of the their options is to have them hold taxes back from any payments made to you (income, capital gains, etc.) The only drawback is they only offer a 28% withholding rate. It is okay for me because I have rental income and I don't send any taxes in, so, when the year is up I am close enough because I over pay with Vanguard and don't pay on the rental....just a thought.
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Old 06-07-2014, 03:37 AM   #29
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My taxes are relatively constant year to year so I just try and be the same as last year over year. I don't mind if I have to pay taxes and penalties if i underpay; it's much cheaper than the work of trying to minimize.
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Old 06-07-2014, 07:23 AM   #30
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Originally Posted by Independent View Post
I'm no tax expert, but I rely on the bold.

My pension has typical withholding. I also do "lumpy" distributions from IRAs. I do a rough, estimated tax when I'm getting toward the end of the years, and specify a withholding percent on the last IRA distribution that seems to get me in the ballpark.

I'll consider the 110% safe harbor if it seems relevant in that year.
This. We control/vary our income each year with withdrawals, sales, & gifts. So wait till late to withhold.

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