Estimated Tax Roth Conversion and Charitable Carryover

[Rhema]

I converted about $1600 into a Roth in April 2024. I just found out that I should have paid estimated tax on this in quarterly deadlines. Well, I didn't work in 2024 until May and the new job pays taxes from my wages. I will make about 23,000 in 2024 in income but I have a charitable carryover of about $12,500 that will reduce my income. I will be in the 10% tax bracket.

1) Is it possible that the income tax from my pay can cover my Roth contribution estimated tax and that I would not have a penalty of any underpayment?

2) Or, should I be trying to pay the estimated tax (10% of $1600 being $160) on the Roth conversion on the IRS website?

3) Also, can I divide up my charitable carryover or do I have to use it all up this year since it's less than my gross income?

Thank you!

[K M W · Accepted solution]

Great question on the timing of making estimated tax payments!

The IRS only requires quarterly estimated tax payments if you will owe $1,000 or more at tax time. Therefore, if the withholdings on  your W2 job are sufficient to cover the tax liability of all your income, including the W2 income as well as the Roth Conversion, there is no reason to make estimated tax payments.

Regarding the charitable contributions, there is not an election you can make to divide the carryforward between future years. However, with that being said, if your income is low enough that you don't utilize all the carryforward in one year, you will be able to carry the unused balance forward to the next tax year. You can carry the unused amount forward for up to five years, but if you don't use them in that period of time, the unused portions become lost deductions.