Retirement tax questions

Agree, the 2210AI "might" help

BUT

Depends on exactly when the RMD $$ were taken.

 

If you don't have withholding done, and IF your RMD was taken in the first quarter of the year, the 2210AI won't help, because the IRS expects you to cover the taxes with an estimated payment in the same quarter that the RMD $$ were removed.

 

Thus, if you only take your RMDs in the 4th Qtr...then the 4th Qtr estimate paid before 15 January could eliminate the penalty when the 2210AI is filled out, but only if fully, or mostly covers the taxes due.

 

Opinion:  The 2210AI is a pain to fill out, and requires meticulous monthly records for all your income types and deductions, withholding..etc.  I've done it once, and have avoided it ever since by either paying a small penalty (<$50) with a shoulder shrug...or upping withholding, or even paying a large 1st Qtr estimate to cover most situations for the year.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*