Withholding or Estimated Taxes?

[Zigner]

This is what he wrote:

You're right - I was talking about later posts.

 

[LdiJ]

You're right - I was talking about later posts.

I did not realize that you were talking about later posts. However since the whole topic was estimated taxes and he never mentioned withholding for himself, then I could only assume that he was still talking about estimated taxes.

 

[Ananisapta]

Thanks

Thanks for the info! I was hoping for a loophole to reduce my withholding but apparently no such luck.

 

[LdiJ]

Thanks for the info! I was hoping for a loophole to reduce my withholding but apparently no such luck.

You are going to owe the same amount of tax whether you do withholding or do estimated taxes. Perhaps you should find someone to run the numbers for you to see where you would stand, and then you can decide about how much should be withheld.

 

[Ananisapta]

Ooops

My last post garbled. What I meant to say was, I was hoping that by having the brokerage withhold my taxes from the distributions, IRS would not be mad at me if I was under-withheld. Vain hope, as it turns out.

I've had no problem figuring and paying estimated taxes and don't anticipate any. Yes, the interest-free loan doesn't appeal. Nor, frankly, am I happy paying part of my Social Security income back to the government that gave me such a lousy return on the money they took from me. I once calculated that had I invested that money in Vanguard Index 500, I'd have twice as much income in retirement.

But that's a rant for another board.

Thanks again!

 

[FlyingRon]

You are going to owe the same amount of tax whether you do withholding or do estimated taxes. Perhaps you should find someone to run the numbers for you to see where you would stand, and then you can decide about how much should be withheld.

Further if you are underpaid you could possibly owe a penalty for not making sufficient estimated payments. Just because you have some amount withheld doesn't give you an out. (Before others jump all over me, yes there are some safe harbor provisions where you won't incur a penalty).

At least NC has less obnoxious of a code than VA when it comes to equally spacing out the payments.

 

[Ananisapta]

At least NC has less obnoxious of a code than VA when it comes to equally spacing out the payments.

DC stands for "Direct Control." The further away I live, the better I feel! r

 

[Janke]

It has NOTHING to do with how much money one has or doesn't have. It has to do with the math skills to do it and you either have or can rent those along with some dicipline. There is every reason to believe that the OP and no reason to believe anyone else doesn't can't do it.

How do you rent math skills????

And the word is discipline, not dicipline.

And of course, everyone can maintain a perfect weight since it is just calories in vs. calories out. Everyone can budget perfectly and always have money for expected expenses (although it is hard to budget for unexpected expenses. Everyone CAN do these things, but most of us don't.

Some people prefer to get a refund from the government once a year so they don't have to worry about coming up with a lump sum. Others prefer to not let the government have use of their money interest free. It is a personal preference. Not a personality flaw.