High CD rates = Estimated taxes!

[jazz4cash]

TT has printed off estimated tax vouchers for me for "years and years"... I just throw them in the trash.

Same here with HRBlock. DW is still w*rking and very disinterested in adjusting her withholding so it’s a crapshoot for us every. I do use late year IRA withdrawals to boost withholding sometimes but we’ve been writing fat checks in April. DW finally adjusted her W4 so this year’s check is a few hundred. Dance.

 

[marko]

You're a rebel Marko !

...and a little insane! Thank God I can afford to be.
BTD!

 

[marko]

The meters in our town are cellular enabled. They send an alert to the parking officer when you occupy the space and don’t pay. You can also just tap your phone on the meter to pay.

Ours are 75 cents for 20 minutes. Even in downtown Boston, haven't received a ticket in 2 years now. Im ahead of the game.

 

[Gumby]

You're right, but I'm trying to simplify my accounts and life, and while small, it's one more account, logon, PW, etc. And for some, another one for their State payments.
...

For reasons unknown to me, I have been unable to sign up for EFTPS, so I just mail them in. I pencil a reminder note into my calendar at the appropriate times.

 

[dmpi]

Everybody's got a little gamble in them whether they admit it or not. Sounds like you found yours.

I do my gambling with the insurance company. I under insure my properties and my cars. I figure statically the insurance company makes money on everything and I not that kind of guy who will claim small stuff.

 

[Sunset]

For reasons unknown to me, I have been unable to sign up for EFTPS, so I just mail them in. I pencil a reminder note into my calendar at the appropriate times.

Before I finally signed up for the EFTPS. I would just go to the IRS site and pay over the web to the IRS instead of mailing checks.

Easier, and free.

https://www.irs.gov/payments/direct-pay

 

[Gumby]

Before I finally signed up for the EFTPS. I would just go to the IRS site and pay over the web to the IRS instead of mailing checks.

Easier, and free.

https://www.irs.gov/payments/direct-pay

I read the link. It sounds like I will have the same problem I had with EFTPS - the identifying information I submitted did not match their records. They don't tell you precisely what the non-matching information is, so I was unable to correct it, despite multiple attempts to guess what could be the mismatched info. There was no way to actually talk to someone for help. And this is exactly why I continue to file my taxes on paper.

 

[Sunset]

I read the link. It sounds like I will have the same problem I had with EFTPS - the identifying information I submitted did not match their records. They don't tell you precisely what the non-matching information is, so I was unable to correct it, despite multiple attempts to guess what could be the mismatched info. There was no way to actually talk to someone for help. And this is exactly why I continue to file my taxes on paper.

You may want to try this, since if it fails, there is no harm. Just be ready to actually pay some estimated taxes in case it succeeds.

They give you a choice of tax years to pick from 2017 to 2021 to state the filing status.
That is as far as I could go since I'm not making a payment on it.

One confusing issue for me has been when filing married, which SSN to use. I use mine instead of DW as I put myself down first on the tax returns.

 

[Fermion]

Unfortunately I have most of my bonds and stuff in tax exempt or tax deferred accounts.

 

[11522914]

I never pay quarterly estimated taxes. I simply take a quarterly withdrawal from my tax deferred account and pay taxes from that.

 

[jazz4cash]

- the identifying information I submitted did not match their records. They don't tell you precisely what the non-matching information is, so I was unable to correct it, despite multiple attempts to guess what could be the mismatched info. There was no way to actually talk to someone for help. And this is exactly why I continue to file my taxes on paper.

We experienced the same issue for about 10 years. We could not efile but I kept trying anyway and the problem went away magically. I even got DW to change her name on file with SS from her maiden name.

 

[Chuckanut]

We experienced the same issue for about 10 years. We could not efile but I kept trying anyway and the problem went away magically. I even got DW to change her name on file with SS from her maiden name.

One thing I read is that couples should always use the same SSN as the first SSN entered on the return. Apparently, some parts of the IRS system don't do well if the numbers are switched. So I am told.

 

[m3bs]

Timely post. I filed my 2022 taxes this morning (owed a whopping $58), and re-registered on EFTPS since the login I used years ago didn’t work. I bought a bunch of CDs and MM funds last week so my withholding won’t cut it any more. I’m also contemplating starting 401K withdrawals early to minimize the RMD hit down the road.

 

[Mulligan]

I've always supposed to pay estimateds but never have. I pay the penalty.

BUT this year, thanks to some TLH I still owed money, but no penalty. As such, I would have sent in $$$$ of MY money for nothing. Yes, I'd get it back, but why give them money sooner than I have to?

Write a check for $4,5 or 6k every 90 days? No thanks. Let them wait for it even if the penalty makes it a bit more. I do have my IRA withdrawals tax taken out at the time but that’s less painful because I never see it first.

Illogical? No doubt! Do I care?

On a related note, I've also stopped paying parking meters. Odds are low that get a ticket and I'd rather pay $25 every few months than fiddle with a parking app or wait in line at some stupid kiosk! Leave me alone! K.I.S.S. (harumph!)

Same here. Even though I file zero and have hundreds extra taken out of my pension monthly I still owe between 3k and 10k depending on how the market does. The penalty seems negligible to me, and I dont want to be bothered with learning how to file estimated quarterly taxes when I dont know what amount I need to pay anyways.

 

[FLJim]

Safe Harbor?

Is Safe Harbor 100% of previous year's taxes, or 110%? I have nothing withheld from pensions and RMD's. File quarterly with EPTPS, easy. Used to make sure 110%. Just filed TurboTax and it printed out vouchers that equal only 100%. Thoughts?

 

[Phroig]

Is Safe Harbor 100% of previous year's taxes, or 110%? I have nothing withheld from pensions and RMD's. File quarterly with EPTPS, easy. Used to make sure 110%. Just filed TurboTax and it printed out vouchers that equal only 100%. Thoughts?

110% if last year’s AGI > $150K, else 100%.

 

[bigriver]

When I was working I made too much from dividends and never paid the estimated taxes. Still don’t when TT says to do it. Started doing my parents taxes 5-6 years ago. Same thing. The IRS is happy to get the money at the end. They are dealing with too many other issues.

 

[COcheesehead]

The IRS will charge interest and penalties for underpaying taxes and they will do it looking backwards. I got hit with over $400 in penalties for 2018 a year or two ago.

 

[RobbieB]

I've been paying estimated taxes for nine years now. I have nothing withheld. I can figure it out myself.

 

[PointBreeze]

As recommended on this Forum, I have the safe harbor amount of taxes withheld or the actual amount of taxes I’ll owe withheld, whichever is lower, from the IRA withdrawal I make in December. Negates the need to make quarterly estimated payments.

 

[audreyh1]

Is Safe Harbor 100% of previous year's taxes, or 110%? I have nothing withheld from pensions and RMD's. File quarterly with EPTPS, easy. Used to make sure 110%. Just filed TurboTax and it printed out vouchers that equal only 100%. Thoughts?

It depends on your prior year AGI. For MFJ $150K or higher uses 110%, lower 100%

 

[rickster55]

Estimate the monthly income from your CDs, multiply by your marginal tax bracket rate expressed as a percent and you will have the extra amount you need to have withheld montly from your pension income. Much easier to adjust pension withholding than to send in estimated taxes quarterly. If you have a State income tax adjust that withholding too.

 

[jazz4cash]

I've always supposed to pay estimateds but never have. I pay the penalty.

Now THAT’s what I call Blowing that dough!

 

[wolf]

Just use the safe harbor of paying prior year’s taxes in 4 equal installments.

Agree. 100%. . Been doing this for years. Then a poster mentioned, if
you are taking RMD's, (required minimum distribution, IRA's).

Easier, to just "Withhold" a portion of the RMD. No more mailing in estimated payments. Been doing this now for the last few years.

So much easier. (still using your idea, pay prior years tax).

 

[Dtail]

It depends on your prior year AGI. For MFJ $150K or higher uses 110%, lower 100%

Single filers also at 150k or higher.