withdrawals are not taxed (unless they are coming out of a tax deferred account such as an IRA) . Othrwise, it's the income earned on the MM that is taxed and th income is taxed whether or not you withdraw it. In addition, since it would seem more money is oming out than going in the earnings for 2024 will likley be less than for 2023.
There will be no federal penalties for not paying in enough taxes during the year if withholding and
a) timely estimated tax payments equal or exceed 90% of your 2024 tax or
b) timely estimated tax payments equal or exceed 100% of your 2023 tax (110% if your 2023 adjusted gross income was more than $150K) or
c) the balance due after subtracting taxes withheld from 90% of your 2024 tax is less than $1,000 or
d) your total taxes are less than $1,000
state laws differ
New York state
You do not need to pay estimated tax if:
- You expect to owe less than $300 of New York State, $300 of New York City, and $300 of Yonkers income tax after deducting tax withheld and credits that you are entitled to claim.
- You expect your tax withheld during 2024 to be at least:
- 90% of the tax shown on your 2024 return
- 100% of the tax shown on your 2023 return (110% of that amount if the New York adjusted gross income [NYAGI] [or net earnings from self-employment allocated to the MCTD] shown on that return is more than $150,000 [$75,000 if married filing separately for 2024]). You must have filed a return for 2023 and it must have been for a full 12-month year.
