@fanfare wrote:
Estimated Tax is credited on the date you paid it. That's why you can be penalized if you don't make a first payment before 4/15 or second payment before 6/15 even if your final
[withholding + estimated tax] is 90% of your tax.
@Texas621
@drings13
@fanfare
It doesn't have anything to do with withholding or late payments. The due date for 4th quarter estimated tax payments is January 15. Regardless of whether the had excess withholding on the IRA withdrawal in November, or made a large excess estimated payment on January 14, it would still rise to a penalty because using the IRS default method, the IRS will determine that 1/4 of that withholding was due the previous April, June and September, before the withdrawal was made. The solution is to use the annualized method on form 2210, schedule AI.
