Name:   GoneFishin - Subject:   Avoid Estimated Taxes Date:   7/13/2022 6:09:19 PM (updated 7/13/2022 6:17:34 PM)

I have never paid estimated taxes.

You can avoid the penalties by making sure your withholding and estimated tax payments equal at least 100% of the total tax you paid in the previous tax year if your income is $150,000 or less. If your income is over $150,000, your payments and withholding should equal at least 110% of last year’s taxes.

I have taxes withheld during the year from my pension but less the amount of my IRA withdrawal. In December, I request that the entire withdrawal be withheld and sent to the IRS. A little know fact, withholding is automatically treated as being paid  throughout the year.

Why pay estimated tax and loan Joe your money????????