On 4/18/2021 9:48 AM, Ralph Mowery wrote:
In article ,
lid says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.



I pay quarterly estimated in 4 equal payments because I don't like the
thought of dealing with my taxes 5x/year. There is a federal web site,
EFTPS at https://www.eftps.gov/eftps/index.jsp
where you can set up automated payments of federal quarterly estimated
income taxes and specify both the exact date and the exact amount you
want to pay each quarter. That way, you can better control your cash
flow by distributing your tax payments between your withholding amounts
and quarterly payment amounts. Never have had a problem with it and
have been doing it for more than 20 years. You provide the routing
transit number and account number of the checking account you want
payments to come from and the web site does the rest. Easy squeezy.
Many states that have state income taxes have a similar web site that
accomplishes the same thing. I set up my automated quarterly payments
the same day I submit my annual tax returns. That way, there's no way
to forget to pay.