Roth Conversions made this year will lead to a Tax Liability next year. Do I have to Pay the Tax Liability by 4/15/25?

[Juliane22]

Hi Terra!

Yes, any taxable transactions made in 2024 will have tax due by 4/15/25. You may want to think about making an estimated payment for some of the taxes now though, the IRS will assess a penalty if you have more than $1,000 due at tax time.

Hope that helps!

[Terra]

Was suggested that to that Estimated Payments for a Tax Liability due by 4/15/25 makes good sense. How to? Want to starting 1/1/25.

[Terra]

Look for Penalty Waiver, I've been told. To avoid that Cost. 

I'll pay the amt owed by 4/15/25.  Have to have filed my Taxes beforehand?

[Juliane22]

Here is a link to the IRS payments page. You can pay directly here: https://www.irs.gov/payments 

[Terra]

Do I have to have filed my '24 Taxes beforehand? I imagine knowing the Gross amt owed is important before Paying the Fed'l Tax owed. I'll pay the amt owed by 4/15/25.

Can I start making approx Payments 1/1/25? Make final Payment by 4/15/25?

[Juliane22 · Accepted solution]

No you don't have to file first, it is actually better to pay before filing. You will need to estimate based on your tax bracket and the amount of the conversion. You can start making payments anytime. 

[Terra]

Thank you. Can I do an "ACH" from my Ck'ing Acc't to IRS?

Cannot sell Mutual Funds this year, however. That'll only add to Tax Liability.

[Juliane22]

Yes! You can make an electronic payment through the website.

[Terra]

While waiting for a reply I went to the IRS Site. ACH Payments doable, easy and safe.

Thank you! Referenced the IRS Payments Webpage.

[Terra]

And IRS will keep track of Payments made?  I will regardless...

[Juliane22]

Yes they will. You can also set up an account with the IRS that will enable you to see the information they have for you. https://www.irs.gov/payments/online-account-for-individuals 

[Terra]

On another topic...

S. Security, PA St. UC both contribute towards Ordinary Income for Federal Inc. Tax Purposes; right?

[Juliane22]

Whether or not Social Security is included depends on your other income. I'm not sure what you mean by "PA St. UC"?

[Terra]

Is that my referenced "Login.gov" to access my IRS Account? To see Payments made and more?