AmyC
Employee Tax Expert

Retirement tax questions

There are reasons the IRS will not charge a penalty (paid 100% of prior year tax bill or new retiree) and the program thinks that if you won't have a penalty, you don't really want to pay.

If you prefer to keep the balance below $1,000 so you don't accidentally get into extra penalties for willfully failing to pay when owing $5,000 or more.

You have 2 options: 

  • You can ask Social Security to withhold more in taxes, Online use  Request to withhold taxes | SSA
  • You can make estimated payments. The IRS has announced they prefer payment through their online portal. Mailing in checks and paperwork takes much more manpower. You can make Payments.
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