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Should I make estimated tax payments in 2023?
I currently will not owe any taxes in 2023. However I do have Solar energy tax credits left over from last year and in order to use them I will need to create taxable income. Last year I converted money from my Traditional IRA to my Roth IRA. The taxes generated were paid by part of my solar energy tax credit and the estimated tax payments that I made were refunded. If I do not make any estimated payments this year and do a Roth conversion using my solar energy tax credits to pay my 2023 taxes, will not having made any estimated taxes in 2023 cause me problems with the IRS? I made estimated tax payments last year (before I purchased the solar electric system late in the year) because I planned to make a Roth conversion prior to purchasing the solar electric system.
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posted
3 weeks ago
last updated
August 31, 2023
4:26 PM
2 Replies
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Should I make estimated tax payments in 2023?
If your total 2023 tax will be less than $1,000, then estimated tax payments are not required.
3 weeks ago
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Should I make estimated tax payments in 2023?
@Insagn and that $1000 is net of the tax credits.
so for example, if the tax generated from the Roth conversions is $3,000 but the unused solar credits are $2500, no requirement to pay estimated taxes as the tax is under $1000.
3 weeks ago
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