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]

No it is a different website, direct with the IRS

[Terra]

I should have a IRS.GOV Acc't. I'll dbl-ck.

[Terra]

To clarify:

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

What do you mean S. Security may or may not contribute towards Ordinary Income?

[Juliane22]

Ok, yes unemployment is included in ordinary income. Social security is taxed based on a formula according to you filing status and other income. You can find the details here: https://www-origin.ssa.gov/benefits/retirement/planner/taxes.html 

[RetireSoon]

I think paying 90% of last year's taxes is 'safe harbor' with IRS; paying that much this year means no penalties apply if you owe more at tax time. (110% if you make a lot?) So I divided my 2023 taxes by 4. Then paid 1/4 of 2023 tax amount by each due date,  subtracting what went to them this year from my paycheck. By 4/15, 6/16, and 9/16 I sent an ACH payment directly to the IRS for the difference. Did the same for state taxes. It might get tricky when income drops after retirement, but for now hopefully it works!

[Terra]

Okay Retire-Soon...

Best on your Retirement Plans. You're tracking it well.

Based on your response, to Pay 90% Estimated Taxes works for you (Safe Harbor). Not incurring any Penalties.

I don't have any outstanding '23 Debt to IRS, but I certainly will when filing '24 Taxes. 

Okay to make an ACH Payment anyway? Build up a "Credit Balance" which will definitely be needed next year? 

Terra

[Terra]

You were most helpful last nite Juliane22. Mentioned making ACH Payments anytime.

While I don't have any outstanding '23 Debt to IRS, but I certainly will when filing '24 Taxes. Roth Conversions done (lg sum of $ for '23)

Okay to make an ACH Payment anyway? Build up a "Credit Balance" which will definitely be needed next year? 

Terra

[Terra]

Hi Juliane22 (et al),

You mentioned on the Wednes 30 TurboTax Outreach/Q & A making ACH Payments anytime. 

While I don't have any outstanding '23 Debt to IRS, but I certainly will when filing 2024 Taxes in 2025. Roth Conversions done (lg sum of $ converted in '24)

Okay to make an ACH Payment anyway? Build up a "Credit Balance" which will definitely be needed next year? 

Terra

[VolvoGirl]

@Terra   Just make an Estimated payment.   You can pay on the IRS website. Be sure to pick 2024 1040ES payment
https://www.irs.gov/payments

[Terra]

Thanks V.V. Girl...

T. Tax Expert Advice echoed going to the IRS Payments Website.

Haven't delved too deep into the IRS Payments Website yet. When I'm ready to Pay (anytime!), I gotta make sure it's for '24 1040 Return. Certainly I will see that option while setting up the ACH Payment.

[VolvoGirl · Accepted solution]

Here