StellarCascade
Confused about dryer sheets
- Joined
- Jun 19, 2023
- Messages
- 2
I've maxed out my ability to contribute to my 401k, IRA, and HSA, and beginning to invest in my taxable account to work towards my FIRE goal.
I'm trying to figure out if I need to be paying quarterly taxes on my taxable brokerage account or not (to cover capital gains, dividends, and interest). From researching online it looks like if I expect to pay over 1,000 dollars in taxes from my taxable account I should be paying quarterly taxes on it. (Which I expect will be the case).
Alternatively it looks like I can go the route of not paying any quarterly taxes during the year, but then pay 90% of my taxes owed for the year in December (to do "safe harbor" estimated payment), and avoid any fees/interest on my taxes. (then pay the remainder owed in April)
Are these the general two options that most people go by? Is my understanding correct of how a "safe harbor" estimated payment works? It's hard to find information on the IRS website about a doing safe harbor estimated payment.
Is there any advantage to doing quarterlies? I feel like it would only be advantageous to wait until December to pay to allow that money to grow some throughout the year
I'm trying to figure out if I need to be paying quarterly taxes on my taxable brokerage account or not (to cover capital gains, dividends, and interest). From researching online it looks like if I expect to pay over 1,000 dollars in taxes from my taxable account I should be paying quarterly taxes on it. (Which I expect will be the case).
Alternatively it looks like I can go the route of not paying any quarterly taxes during the year, but then pay 90% of my taxes owed for the year in December (to do "safe harbor" estimated payment), and avoid any fees/interest on my taxes. (then pay the remainder owed in April)
Are these the general two options that most people go by? Is my understanding correct of how a "safe harbor" estimated payment works? It's hard to find information on the IRS website about a doing safe harbor estimated payment.
Is there any advantage to doing quarterlies? I feel like it would only be advantageous to wait until December to pay to allow that money to grow some throughout the year
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