Another income tax question

[Bali Hai Again]

What is the name of your state? New York

Question(s) about estimated tax payments.

Background:

2023 income derived from SS benefits, taxable interest and retirement withdrawal. 2023 tax liability is zero.
2024 income derived from SS benefits, taxable interest and significant RMD withdrawal. 2024 tax liability is significant.

Reading the IRS rules (if I read them correctly) estimated tax payments are not required for 2024 since the tax liability was zero for 2023.

Since the 2023 income tax is zero, am I subject to estimated tax payments in 2024 If the RMD is taken in January 2024? If I am not subject to estimated tax payments in 2024, can all of the tax owed for 2024 be paid legally on April 15, 2025?

As always, thank you in advance for your input.

 

[Taxing Matters]

The basic rule for most taxpayers is the following, from the 2023 Form 1040-ES Instructions with the years modified for the 2024 return (the 2024 Form 1040 ES is not out yet, but the rules haven't changed):

1. You expect to owe at least $1,000 in tax for 2024, after subtracting your withholding and refundable credits.​

2. You expect your withholding and refundable credits to be less than the smaller of:​

a. 90% of the tax to be shown on your 2024 tax return, or​

b. 100% of the tax shown on your 2023 tax return. Your 2023 tax return must cover all 12 months.​

As a result, if your 2023 return shows zero tax after subtracting withholding (primarily from W-2 or 1099 form) and refundable credits then you do not need to make estimated tax payments for 2024. In that case, just make sure that you pay your 2024 liability on or before April 15, 2025 even if you request the extension to file. The extension to file is not an extension to pay.

 

[Bali Hai Again]

The basic rule for most taxpayers is the following, from the 2023 Form 1040-ES Instructions with the years modified for the 2024 return (the 2024 Form 1040 ES is not out yet, but the rules haven't changed):

1. You expect to owe at least $1,000 in tax for 2024, after subtracting your withholding and refundable credits.​

2. You expect your withholding and refundable credits to be less than the smaller of:​

a. 90% of the tax to be shown on your 2024 tax return, or​

b. 100% of the tax shown on your 2023 tax return. Your 2023 tax return must cover all 12 months.​

As a result, if your 2023 return shows zero tax after subtracting withholding (primarily from W-2 or 1099 form) and refundable credits then you do not need to make estimated tax payments for 2024. In that case, just make sure that you pay your 2024 liability on or before April 15, 2025 even if you request the extension to file. The extension to file is not an extension to pay.

Thank you for your response TM!