Yet another question regarding estimated tax payments.
For my situation, I will be in FIRE, but my DW will still be working.
She will have her usual withholdings from her paychecks for State and Federal Taxes.
I will be eligible to draw a Pension, and I am thinking that I will set that up to have regular monthly withholdings for State and Federal taxes as well.
To make up the difference in estimated taxes, I plan on selling off some after tax assets in the beginning of the year.
I have read that the IRS expects taxes to be paid when the income is received, so....if I am doing estimated tax payments on the proceeds of the after tax sell off, do I pay the full estimated tax payment the first quarter only?
Assuming I have no other transactions, are my other quarterly estimated tax payments zero?
Or, can I truly 'pro-rate' the taxes of my beginning of the year sell off and spread them across the 4 quarterly estimated tax payments?
For my situation, I will be in FIRE, but my DW will still be working.
She will have her usual withholdings from her paychecks for State and Federal Taxes.
I will be eligible to draw a Pension, and I am thinking that I will set that up to have regular monthly withholdings for State and Federal taxes as well.
To make up the difference in estimated taxes, I plan on selling off some after tax assets in the beginning of the year.
I have read that the IRS expects taxes to be paid when the income is received, so....if I am doing estimated tax payments on the proceeds of the after tax sell off, do I pay the full estimated tax payment the first quarter only?
Assuming I have no other transactions, are my other quarterly estimated tax payments zero?
Or, can I truly 'pro-rate' the taxes of my beginning of the year sell off and spread them across the 4 quarterly estimated tax payments?