Fed Income tax

[rsm]

I was retired half of 2025. I estimated my taxes post-working, but I underpaid. Turns out the penalty for underpaying was about 3.1% of the amount I owed (which I just paid + penalty when I filed my taxes).

For 2026, I can make a lot more sitting on the taxes I owe for 11 months, then do a single withholding payment for my total estimated tax in December each year and have a lower probability of incurring any penalties.

My goal is to owe less than $10K every year. No interest free loans to the government from rsm.

 

[70 Mach 1]

Yup. Love the way it's a one way street.
They hold your money all year and give you back jack shit.
You owe them and its plus interest and penalties

I hate the tax system

 

[Floyd Eye]

I was retired half of 2025. I estimated my taxes post-working, but I underpaid. Turns out the penalty for underpaying was about 3.1% of the amount I owed (which I just paid + penalty when I filed my taxes).

For 2026, I can make a lot more sitting on the taxes I owe for 11 months, then do a single withholding payment for my total estimated tax in December each year and have a lower probability of incurring any penalties.

My goal is to owe less than $10K every year. No interest free loans to the government from rsm.

My goal is plus or minus no more than $500, which is generally offset by my state taxes.

 

[IndyWS6]

It took a few years, but I have this down to a science. That’s no small feat considering the annual indecipherable changes… I prefer to get a little back than to slightly owe. The state and county tolls are harder to predict. YMMV…