Soon we are going to take our 2023 RMD. Will have the custodian withhold & send to the IRS the $ needed for our 2023 estimated taxes. (we didn't make Q payments). Not sure how much due to conflicting info. Using $15k as a sample fed tax liability for 2022 and all other numbers relative to that--
- Is it correct that per IRS rules, if 2022 total fed tax liability was $15k, safe harbor for 2023 is $15k from the RMD goes to the IRS for withholding? (for AGI under $150k).
- Tho we didn't use them, the four1040-ES forms generated on our 2022 Turbo Tax form with a sample 2022 tax liability of $15k add up to a total of only $7945, which is abt 52%.
- After seeing what the 1040-ES forms added up to, we estimated our 2023 taxes (using TT 2022, so not ideal). It shows we only need to send in $8602 as estimated for 2023 to avoid a penalty, which is about 57% of the $15k fed tax liability in 2022 that were are using in this example.
We don't understand why is TT is coming up with much lower numbers than what we think is the standard rule (100% of last years liability) What are we missing and what's the correct amount to send in from the RMD for this example? We anticipate owing an amount slightly higher than last year.
Thank you very much for any insights and help.
