We took a very large sum out of a retirement account. They withheld 20% for federal income taxes. How do we pay state income tax so there will not be a penalty for a large amount due on 4-15-20? And how do we know the amount?
You just need to make an estimated tax payment to Indiana. It's basically the amount of the distribution multiplied by 3.23% (Indiana tax rate).
Here's the link to the estimated tax form.
You just need to make an estimated tax payment to Indiana. It's basically the amount of the distribution multiplied by 3.23% (Indiana tax rate).
Here's the link to the estimated tax form.
Is there a penalty for underpayment on federal taxes as well? Is there a form I can use?
You can send in some more to the IRS using 1040ES. Here are the blank estimate forms and instructions for federal. You need to go to your state's website to get theirs.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040es.pdf">https://www.irs.gov/pub/irs-pdf/f1040es.pdf</a>
Or you can pay directly on the IRS website <a rel="nofollow" target="_blank" href="https://www.irs.gov/payments">https://www.irs.gov/payments</a>
Be sure to pick the right kind of payment and year.....2019 Estimate