Have Tax Questions? Ask a Tax Expert for Answers ASAP
Welcome and thanks for your question!
If you are looking to pay in additional taxes prior to filing your tax return in the spring, you can make estimated tax payments.
Federally, you would use Form 1040-ES and for California purposes you would use Form 540-ES.
I withdrew the money in May 2013, with my wife and I we usually are about even on taxes, but because of this withdrawl, now I owe big time, will I have to pay a penalty? how do I start with the estimated tax payments?
However, if you are comfortable paying in the tax when you file your tax return, you do not need to pay in additional tax prior to year-end if you meet certain requirements.
what are the certain requirements, I would like to wait until I file, but do not want to pay the penalty,
Generally, as long as you have paid in at least 100% of the amount of your prior year tax liability (line 61 of your federal 1040 or line 64 of your California return), you will not owe a penalty when you file your return.
If you have had roughly the same amount of taxes withheld from your wages in 2013 as you had in the past and because you had the withholding on the IRA withdrawal, you are probably fine.
In summary, I should not be penalized according to the above, but to be sure, should I go to a CPA for more detailed advise, what is the penalty, about, if I need to pay it,, thanks,
Yes, I would consult with a local advisor who can analyze your tax situation more fully.
thanks, XXXXX XXXXX the best way to find someone, I do my own taxes,
The California CPA Society has a Find a CPA feature on their website here - http://www.calcpa.org/public/referral/findcpa.aspx
thanks for all your help, have a great weekend,
You have a great weekend as well. It was my pleasure working with you.