Looking4Ward
Full time employment: Posting here.
This is going to be a bit of a goofy year in terms of federal income tax.
I retired 6/1/14 and had the proper amount of income tax withheld on all salary, bonuses, and paid out benefits.
But the dividends and expected capital gains distributions on my after-tax portfolio are going to be substantial this year, so much so that it looks like I will be in an under-payment penalty situation when I complete my federal tax return for 2014 compared to income/withholding for 2013.
The brunt of the impact will be later next month when Vanguard distributes capital gains on Wellesley and Wellington. Should I make an "estimated" tax payment? If so, when should I do that?
I retired 6/1/14 and had the proper amount of income tax withheld on all salary, bonuses, and paid out benefits.
But the dividends and expected capital gains distributions on my after-tax portfolio are going to be substantial this year, so much so that it looks like I will be in an under-payment penalty situation when I complete my federal tax return for 2014 compared to income/withholding for 2013.
The brunt of the impact will be later next month when Vanguard distributes capital gains on Wellesley and Wellington. Should I make an "estimated" tax payment? If so, when should I do that?