Quote:
Originally Posted by retiredguy123
I use the prior year tax rule to pay an equal amount of estimated tax every quarter. It makes no difference when I receive income during the year. There is no penalty due. And, the income tax due on any IRA withdrawals or conversions are always due on April 15 of the next year, regardless of when you received the income. So, you can receive the income in January or December of the prior year, but the same tax amount is due on April 15 of the next year.
Yes, if you don't use the prior year tax rule, you could owe a small penalty if you don't adjust the estimated quarterly payments.
|
I appreciate that information. I would love to be able to find it on the IRA.gov site. If you happen to have a link to the publication that explains that, I'd appreciate it. I'll keep searching.
Thanks.