Fire and taxes: do you withhold or estimate quarterly pay?

[RE2Boys]

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.

 

[audreyh1]

Have no pension to withhold from. Do quarterly estimated payments.

 

[Kimo]

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.

 

[free4now]

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.

 

[gerntz]

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.