A little confused on this topic and trying to avoid having to pay any interest or a penalty.
When my CPA filed my Federal and State Taxes last year I owed a small amount in interest/penalty as I had not paid enough during each quarterly period.
This year I did a huge Roth Conversion in the second quarter and made a huge second quarter Federal and State Estimated Tax payment. ( I also made a smaller 1st. quarter estimated payment).
I believe the 2nd quarter payment is more than enough to cover not only the Roth conversion ( done in MAy of this year); but also to pay any taxes due in the 3rd and 4th quarter of this year ( from pensions; dividends; RMD's, etc).
So I have not made any 3rd or 4th quarter estimated tax payments.
Even though I understand the IRS sees taxes as a "pay as you go" system; if I prepaid all remaining taxes due for the entire year in the 2 nd qtr. of this year; this should satisfy my tax liabilty correct?
And I realize I am paying the IRS/ State earlier than I need to; but just asking if this is suffcient to avoid any penalties/ interest for this year.
Thanks.
When my CPA filed my Federal and State Taxes last year I owed a small amount in interest/penalty as I had not paid enough during each quarterly period.
This year I did a huge Roth Conversion in the second quarter and made a huge second quarter Federal and State Estimated Tax payment. ( I also made a smaller 1st. quarter estimated payment).
I believe the 2nd quarter payment is more than enough to cover not only the Roth conversion ( done in MAy of this year); but also to pay any taxes due in the 3rd and 4th quarter of this year ( from pensions; dividends; RMD's, etc).
So I have not made any 3rd or 4th quarter estimated tax payments.
Even though I understand the IRS sees taxes as a "pay as you go" system; if I prepaid all remaining taxes due for the entire year in the 2 nd qtr. of this year; this should satisfy my tax liabilty correct?
And I realize I am paying the IRS/ State earlier than I need to; but just asking if this is suffcient to avoid any penalties/ interest for this year.
Thanks.