W2R; said:I don't have to do a thing. I have both the EFTPS (and the equivalent service for the State of Louisiana) set up to automatically pay them for me today by automatic deduction from my checking account. I always keep enough in checking to cover estimated taxes in case I accidently forget.
W2R; said:I don't have to do a thing. I have both the EFTPS (and the equivalent service for the State of Louisiana) set up to automatically pay them for me today by automatic deduction from my checking account. I always keep enough in checking to cover estimated taxes in case I accidently forget.
Knowing about the EFTPS is ANOTHER one of those amazing and helpful bits of information that I originally got from Audreyh1, who has posted about it for years. Thank you once again, Audreyh1.
I use EFTPS and got my BoA alert that the IRS withdrew mine today.
I schedule EFTPS and state payments as well, in January after taxes and an annual Roth conversion.. . . I'll also mention again, if you take RMDs, the simple, easy way to make estimated payments is to have them taken out of the RMD as a withholding. It can be done as a once a year withdrawal, and it still counts to the IRS the same as being done quarterly. If your RMD covers your total estimated taxes, it's "one and done". . .
I schedule EFTPS and state payments as well, in January after taxes and an annual Roth conversion.
The conversion accounts for most of my taxable income. Is there a work around that would allow me one payment rather than four, similar to the RMD withholding? Perhaps withholding from a single Roth conversion in December?
Reducing my Roth contribution isn't a factor, since the source of my tax payment is either a traditional or Roth IRA.
They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL)... So if your RMD is large enough to cover your entire tax bill, you can keep your cash safely ensconced in the IRA most of the year, avoid withholding on other sources of retirement income, skip quarterly estimated payments . . . and still avoid the underpayment penalty.
I've missed the June payment a couple of times and made it in July. Never a word from the IRS on this.
Now I do the EFTPS thing on automatic.
Do you enter in your tax software what date you paid it? That’s where it is reconciled.
Thanks. Now all I have to do is compare earlier Roth returns against later tax payment. Inertia is powerful.AFAIK, any withholding is treated by the IRS as if it was done evenly over the year.
Here's a more up-to-date source than I found at the time I started this for MIL:
https://www.kiplinger.com/article/retirement/T045-C000-S004-withhold-taxes-from-your-rmds.html
They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL).
-ERD50
AFAIK, any withholding is treated by the IRS as if it was done evenly over the year.
Here's a more up-to-date source than I found at the time I started this for MIL:
https://www.kiplinger.com/article/retirement/T045-C000-S004-withhold-taxes-from-your-rmds.html
They also mention that you can have w/h from SS, and that your State may not be handled by your brokerage (Fidelity does handle IL).
-ERD50
I've missed the June payment a couple of times and made it in July. Never a word from the IRS on this.
Now I do the EFTPS thing on automatic.