@fanfare wrote:
Disaster?
Make an Estimated Tax payment before you spend that money and you won't have to worry about Tax Day.
@Frank51281
you can pay on the irs website or EFTPS.gov
I wouldn't use EFTPS, no need to set up an account. Just go to www.irs.gov/payments. Make sure to select "2022 estimated taxes" from the menu of reasons for the payment. Don;t forget you may also owe an estimated payment to your state, state taxes at that income level will be between 7-13% depending on your state.
While you could have spread out the money over 2017-2022 if you had better advice to begin with, since it all has to be withdrawn in 2022, it doesn't really matter for tax purposes if it happened all at once or spread out over the year.
