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.
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Agreed - but if you have made tax estimates based upon a reduced income in the next year and did use not the safe estimates equal to last year taxes (possibly plus 10% if you're in a higher bracket) and then you got a large income in the last quarter form 2210 is what is used to avoid a penalty if you make an larger tax payment in January.
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
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