Taxable income from inheritance from deceased brother. I got check part of which is taxable. Do I have to pay estimated Fed & State (Wi) taxes now or at 2017 tax filing

[Cheetahman]

haven't cashed check and I don't know how much time to pay estimated taxes if required.  Don't want to pay penalties by paying late.  Thanks!!!

[VolvoGirl]

Depends what it is from.  Like a IRA, 401K or retirement account.  Or something else?

[Cheetahman]

I got a schedule K-1 form 1041 with rental income, interest income and 401K distribution (taxes not taken out from estate but taxed on beneficiaries - 38% vs 28% or lower).  Got this from estate ADMIN.

[fanfare]

Get Form 1040-ES available at www.irs.gov and you will see the payment deadlines. Estimated payment is due for the quarter in which you receive the income.

[Cheetahman]

It was a 401k inherited.  My other brother seems to think I might have needed to pay per the taxable event, the end of estate taxable year.  I went to see a tax expert and they said that wouldn't need to pay estimated taxes on this.  Instead they advised me to go HR at my employer and have my exemptions from 3 down to 0 ( I looked and I have 2 for Fed & 1 for State).  They said that by doing this, I should be paying enough throughout the year (and refund I got last year) to cover this.  Does this sound right?

[fanfare]

If you are in a position where cash is tight and you need that money, the HR route might make sense. But what if that adjustment is not enough ?
If you have taxable income, it goes on your personal income tax return, like anything else, and if it is a substantial amount  I would use the 1040-ES to put some money into the IRS now. Using W-4 is just getting too cute.
visit directpay.irs.gov and select "Estimated tax payment".

[VolvoGirl]

A 401K is normally 100% taxable unless it was in a ROTH 401K.  It may push you into a higher tax bracket.

[Cheetahman]

Can I create a dummy 2016 return adding new income to help get estimated tax? I wouldn't file
Not sure I can as I already filed 2016 return

[SweetieJean]

You can use this for Federal:
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/">https://turbotax.intuit.com/tax-tools/...>