I retired this year and can't figure out when income needs estimated tax payments.
I've received some interest in my investment accounts and not paid any estimated tax because my current income total to date doesn't exceed the taxes that were already withheld this year (by my employer pre-retirement date in March), but if I receive enough taxable distribution income in December that pushes me into needing to pay taxes, does that mean I will be penalized for not having paid estimated taxes this summer on the interest? I'm completely clueless about how to predict what dividend and cap gains distributions will show up in December.
And if I get a distribution in the investment account in December and it was so big that it would cause my Social Security income to become partly taxable, would the IRS expect that I should have paid taxes on SS throughout the year even if I didn't know until December that I would have income?
I think I've read on these boards that a person is safe if they pay the same taxes as the previous year, but I don't want to do that because I was fully employed last year and paid a LOT of taxes last year.
I've received some interest in my investment accounts and not paid any estimated tax because my current income total to date doesn't exceed the taxes that were already withheld this year (by my employer pre-retirement date in March), but if I receive enough taxable distribution income in December that pushes me into needing to pay taxes, does that mean I will be penalized for not having paid estimated taxes this summer on the interest? I'm completely clueless about how to predict what dividend and cap gains distributions will show up in December.
And if I get a distribution in the investment account in December and it was so big that it would cause my Social Security income to become partly taxable, would the IRS expect that I should have paid taxes on SS throughout the year even if I didn't know until December that I would have income?
I think I've read on these boards that a person is safe if they pay the same taxes as the previous year, but I don't want to do that because I was fully employed last year and paid a LOT of taxes last year.