Quote:
Originally Posted by retiredguy123
I believe that mandatory tax withholding of income tax only applies to wages and certain other earned income, not to other payments, such as pensions, social security income, IRA transfers, or other payments. I never allow anyone to withhold taxes from any of my payments. I pay all income taxes directly to the IRS with quarterly estimated payments. I don't understand why some people allow a third party to withhold money from their income.
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Withholding triggers safe harbor rules when determining if there is an under-payment penalty.
Accurate calculation of estimated taxes avoids penalties also but that relies on the investment company to be timely and accurate - once was enough for me.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY
Randallstown, MD
Yakima, WA
Stevensville, MD
Village of Hillsborough
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