@ATE
If, you are retired and your only income is your retirement MRD and SS, and you have not taken money from your Investments until the end of the year are you required to make payments in Mar. June or Sept etc.(dates not accurate just as an example)? Or is it okay to make it in the last quarter of the year??

You can make the payments at the end of the year. If you owe more than $1,000, but you file your return by 31 January 2015 (for the 2014 return), you can settle up without making any 15 Jan 15 estimated payment without penalty.

If your total tax owed on your tax return is $1,000 or less, NO estimated payments are due at all.

Not sure I understand. Say my RMD is $15,000 and because I have enough cash on hand to hold me until Nov, Dec 0f 2015 and I take it out during that period, do I need to make EST Tax payments on the 15K in the 4 quarters prior to the withdrawl?

Here's what I do. I have Vanguard make the RMD monthly, send it to Prime Money Market acct, after taxes, and then when I want cash, I write a MM check. You don't need to make any estimated tax filings.

I agree IF the $15,000 is your only income. However, combined with Social Security and OTHER pension benefits, the OP's overall annual income is probably considerably MORE than $15K, which means an estimated tax payment IS needed unless he/she files before 31 Jan 15 and settles up.

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Originally Posted by ma0641

Here's what I do. I have Vanguard make the RMD monthly, send it to Prime Money Market acct, after taxes, and then when I want cash, I write a MM check. You don't need to make any estimated tax filings.

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I had a friend who did it that way. I no longer have Vanguard. My situation is for Tax Year 2015. Today is Feb 7, 2015 and my plan is to remove $15K RMD on Dec 1, 2015. Do I need to file Est Tax for each of the 3 quarters up to the RMD?

In past years, I have taken the RMD in Jan or Feb of the year and paid the due tax, now I want to wait until the end of the year to do it.

You can make the estimated tax payment in the month you GET the money. You do NOT have to make the payment before then.

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Originally Posted by AtlantaTaxExpert

You can make the estimated tax payment in the month you GET the money. You do NOT have to make the payment before then.

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Thanks, ATE that is what I wanted to know. Taxes are bad enough, and the thought of having to pay taxes ahead of time for money not yet received. I think, it would be a little over the top.

Many people do it all of the time in ignorance.