@Opus 17 wrote:
A reasonable estimate seems to be that if the taxpayer must withdraw more funds to pay the estimate, they should probably withdraw and send to the IRS about $18,000–20,000, depending on whether they will be in the 22% or 24% tax bracket. That should be close enough or even a little over, and if the estimate is over-paid, it will come back as a tax refund.
Two more things:
Assuming the $65K withdrawal was made after September 1, 2023 (the taxpayer didn't say), the estimated payment is due January 15, 2024. It may reduce their overall taxes if the second withdrawal to cover the taxes is made after January 1, 2024, because that shifts some of the income to the next year and reduces their 2023 taxable income. However, it may also be better to realize all the income in 2023 and have less taxable income in 2024. It depends on the taxpayer's other income and sources (social security, if they have a Roth IRA, etc.). It would take some testing to see which is better.
And lastly, if the RV withdrawal was made before September 1, meaning the estimated payment is now late, the estimated payment should be made as soon as possible, because the sooner you pay, the less interest the IRS can charge on the late payment.
