Hi,
I’m retired, and living mostly on SS and savings in a money market account. I got 2019 Turbotax, and punched in approximate numbers, and got zero tax for this year. But my wife had a MRD this year and I’d like use it to pay the tax on a Roth rollover. But when I added that into Turbotax, it told me I owed an Estimated Tax penalty.
I looked at an IRS publication and there it said that the estimated tax is not needed to be paid until I have some estimated tax income. So what is that, is SS included in it (I also have some bank interest and investment income)? If I do the rollover in December, and pay my 4th quarter estimated tax, as defined in my 2018 tax return, by January 15, will the penalty still apply? Turbotax did not give me such an option.
