2023 Estimated Taxes

[MarieIG]

When we reach RMD age we’ll reevaluate. DH plans to do QCDs with his.

I haven’t used stamps to pay estimated taxes in two decades!

My DH would never do the QCDs. I would definitely do them. I am considering leaving a bit of my traditional IRA unconverted just for this purpose. (DH does know I give to charity.)

 

[Surewhitey]

Given what the next 6 months of inflation will likely be I'm not going to get new IBonds this year. Yield on money market fund is much better.

Yeah, we talked about it on the dog walk and decided the same... Locking in a 5% for 5 years is more appealing than the unknown future inflation rate.

 

[Thomasbob]

Finally found the updated tax code coving this

[FONT=&quot]I finally found it. [/FONT][FONT=&quot]US Tax Code 6654(g)(1) says: For purposes of applying this section, the amount of the credit allowed under section 31 for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Here is a link to the code, effective Jan 14, 2023: https://uscode.house.gov/view.xhtml?req=(title:26 section:6654 edition:prelim) [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]So, this is a legit and legal way of paying taxes in opposition to quarterly estimates. Simply pay the previous year tax burden 100% or pay 90% of your current year estimated tax burden (both considered safe harbor amounts = no penalty).[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]I know plenty of smarter people on here use this and said it was legit but i wanted to see it in writing from the Gov so i would feel safe from any penalty or interest.
[/FONT]

 

[MarieIG]

That's what we do, DW pays all the estimated taxes and the property tax !

Isn't that the marriage benefit

Hmmmm, I do that too! (Although I have withholding done on his pension, about which he complains bitterly.)

 

[MarieIG]

[FONT=&quot]I finally found it. [/FONT][FONT=&quot]US Tax Code 6654(g)(1) says: For purposes of applying this section, the amount of the credit allowed under section 31 for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Here is a link to the code, effective Jan 14, 2023: https://uscode.house.gov/view.xhtml?req=(title:26 section:6654 edition:prelim) [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]So, this is a legit and legal way of paying taxes in opposition to quarterly estimates. Simply pay the previous year tax burden 100% or pay 90% of your current year estimated tax burden (both considered safe harbor amounts = no penalty).[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]I know plenty of smarter people on here use this and said it was legit but i wanted to see it in writing from the Gov so i would feel safe from any penalty or interest.
[/FONT]

Always smart to confirm.

Or 110% for couple whose income exceeds 150k.