Roth Conversion Tax Reporting / Payment Question

[bingybear]

4 equal payment meeting the IRS dates for "quarterly" should work. That is what I try to do.
I try to use the required estimated taxes calculated for the past year's taxes if nothing had changed much. This is more than I paid last year, but I don't expect this year to be any different. I'm converting to higher brackets.

 

[Gotadimple]

Another fine website to ask tax questions exists at fairmark.com. Click on Tax Help, then Forum. You will need to register, but you will also get clear definitions of what the IRS expects.

 

[RetireBy90]

there is a significant difference if you pay in December as an estimate or have it withheld at the same time.

So this is my first year without W2 income, and first year of doing conversions. If I have an estimated tax payment and a withholding both does that change the IRS response ?

 

[kaneohe]

So this is my first year without W2 income, and first year of doing conversions. If I have an estimated tax payment and a withholding both does that change the IRS response ?

Probably not ........if the withholding alone doesn't get you to safe harbor, they will check to see if estimated payments were timely (paid in equal quarterly payments or faster) and if not, assume you were late unless you provide F2210 Sch AI showing that payments were timely with income.

 

[RetireBy90]

Guess I’ll work through the 2210 then. Thanks