SecondCor521
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I am trying to make sure my father meets the safe harbor provision for taxes this year. He is 81 years old.
My Mom died last year, so this year my Dad will file single instead of MFJ. As a result of this and other factors, his taxes due this year will be about 25% higher than last year. He has a relatively high income. As a result of those facts, I think the easiest safe harbor rule to meet is to send in 110% of his prior year (2016) taxes.
He took his RMD for this year already and withheld taxes then but was unfortunately about $2K short of the 110% amount.
What I'd like to do is just have him send in an estimated tax payment of $2K in about December of this year.
1. Will that work to meet the safe harbor?
2. Does he need to send it in in the same tax quarter as his RMD (possibly too late for this), or is December OK?
If that doesn't work, I suppose I can have him do an additional $2K IRA withdrawal and just send all of it to the IRS, since that counts for withholding and I know if he does it that way it will work.
3. Will Vanguard do an IRA withdrawal where 100% of the withdrawal goes to the IRS?
Thanks!
My Mom died last year, so this year my Dad will file single instead of MFJ. As a result of this and other factors, his taxes due this year will be about 25% higher than last year. He has a relatively high income. As a result of those facts, I think the easiest safe harbor rule to meet is to send in 110% of his prior year (2016) taxes.
He took his RMD for this year already and withheld taxes then but was unfortunately about $2K short of the 110% amount.
What I'd like to do is just have him send in an estimated tax payment of $2K in about December of this year.
1. Will that work to meet the safe harbor?
2. Does he need to send it in in the same tax quarter as his RMD (possibly too late for this), or is December OK?
If that doesn't work, I suppose I can have him do an additional $2K IRA withdrawal and just send all of it to the IRS, since that counts for withholding and I know if he does it that way it will work.
3. Will Vanguard do an IRA withdrawal where 100% of the withdrawal goes to the IRS?
Thanks!