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Should I pay estimated state tax
Old 12-28-2017, 06:56 AM   #1
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Should I pay estimated state tax

This is the first year I have been 100% living off my nest egg. My financial people have been paying 10% of what is withdrawn to the feds as estimated tax. Their opinion is that after tax, I will get much of this back.

I have paid nothing to the state (Ohio) on the withdrawals. Their opinion is that I will end up owing them nothing anyways. Does anyone think I should pay like $100 by year's end and then wait for that return in March/April?
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Old 12-28-2017, 07:09 AM   #2
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At this point with only a few days left in 2017 it should be relatively quick and easy for your or them to sketch out your tax situation unless your taxes are real complicated and get a good idea.... presumaly they have done that.. and $100 would make no difference anyway.

You might try this income tax calculator that does both federal and state income tax to see.

Income Tax Calculator - Tax-Rates.org
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Old 12-28-2017, 08:11 AM   #3
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Another thing you need to learn is what the "safe harbor" rules are for both your federal and state returns. The "safe harbor" rules indicate the minimum amount of taxes you need to have paid beforehand, though withholding and estimated taxes. If your tax liability is very low (or zero), you may need not to have prepaid any taxes beforehand. The instructions for making estimated taxes will show you how to figure this out.


The 4th quarter 2017 estimated tax payments are due on or about January 17th (give or take a day), so you have time to figure it out. However, if you plan to itemize your deductions on your federal return, you will need to pay your state estimated income taxes by the end of 2017 so you can deduct them. I just made my 4th quarter estimated state income tax payment today for that reason. I'll make my 4th quarter estimated federal income tax payment next week (after I receive some more end-of-month money).
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Old 12-28-2017, 09:19 AM   #4
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If you're paying your "financial people", listen to their advice. They know a lot more about your financial situation than anyone here.
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Old 12-28-2017, 11:34 AM   #5
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Quote:
Originally Posted by walkinwood View Post
If you're paying your "financial people", listen to their advice. They know a lot more about your financial situation than anyone here.
This. Last year my tax person told me not to pay any quarterly taxes to either Fed or State because I would not be owing any taxes. Although it made me nervous, I took his advice and he was right. I ended up owing the state $1.00 and got a refund from the Feds for overpayment of my ACA coverage premiums.
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