I take out my full RMD (for wife and I) in the first week of January. In past years I made estimated payments of 25% of what I knew my taxes would be plus a buffer. So If my taxes were going to be $20,000, I would make estimated payments of $5,100 and have the $400 excess applied to the next year.
But this year my RMD total is very big and I'm concerned with being told I paid too little each quarter. My RMD makes up 70% of my AGI. Can I still make estimated payments of 25% of my estimated annual tax and be OK? My estimated payments will exceed my actual tax by over $500.
I can know my taxes accurately because I have no investments outside of my IRA's and Roth's and any cash that might generate interest in my Brokerage account is not enough to matter.
Thanks.
