Personal Finance and Investing

Yonnie3

(18,551 posts)

13. Vanguard allows me to withhold 0% up to 90% IIRC

Tue Oct 24, 2023, 02:27 PM

Oct 2023

I make sure that I pay roughly the full amount due for the year with that IRA withholding, so the safe harbor rules are indeed a safe harbor for me.

Long ago I was estimating quarterly payments that weren't equal because my income was varying a great deal. I prefer not to spend my time doing that and this method I use avoids the tedium of using 2210 to minimize or avoid penalties. I'd venture a guess that back then I wasn't doing a good job on the estimation of income and what the taxes were.

I have a couple of semesters in tax courses, did the training for and participated in VITA and TCE programs. It has been more than 10 years and I've quite likely forgotten important details.

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Underpayment penalty [View all] walkingman Oct 2023 OP

Google "estimated taxes" and, for next marybourg Oct 2023 #1

Thank you - the "safe harbor" rule might be something I can use. walkingman Oct 2023 #2

I make estimated tax and other kinds of payments using eftps.gov progree Oct 2023 #3

Thanks for the info!! walkingman Oct 2023 #14

Two ways to satisfy withholding requirement IbogaProject Oct 2023 #4

Yes, I need to take the time to get a good estimate of my liability- thanks. walkingman Oct 2023 #15

Link to IRS rules nitpicked Oct 2023 #5

I do have several already matured - I need to do some calc to see what I am actually dealing with. Gracias. walkingman Oct 2023 #16

You must meet your tax obligations on a quarterly basis progree Oct 2023 #6

I wait and don't get a penalty Yonnie3 Oct 2023 #7

Yes, you met your tax obligation on a quarterly basis progree Oct 2023 #9

I have taxable income in every quarter, Yonnie3 Oct 2023 #10

Umm progree Oct 2023 #11

Vanguard allows me to withhold 0% up to 90% IIRC Yonnie3 Oct 2023 #13

That is correct. If walkingman gets interest from the CD in Feb, then he has to pay an estimated tax to Wonder Why Oct 2023 #12

That is what I am a little worried about - was hoping to make a payment or overpayment by EOY.- thanks walkingman Oct 2023 #18

definately too late for that - thanks. walkingman Oct 2023 #17

If you have a good estimate Unwind Your Mind Oct 2023 #8

My thinking also - need to do a little more reasearch - thanks. walkingman Oct 2023 #19

Most of the CDs, not all (maybe 60-70K) are brokered CDs through Fidelity. It would be nice walkingman Oct 2023 #20