Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I have a tax withholding question - I am retired so I don't…

I have a tax withholding...
I have a tax withholding question - I am retired so I don't have withholding on W2. My last year tax liability was below $1000 so I didn't send pre-payment to IRS. This year my tax will be higher. I haven't send in any payment yet, but I plan to get an traditional IRA distribution before the end of the year, which will make my tax liability much higher (over $1000).To avoid tax underpayment penalty, I plan on having the financial institution withhold certain % of IRA distribution to make the tax payment equal or higher than my last year's tax. I just want to confirm this with a tax expert to make sure that this will indeed allow me to avoid the penalty.Thank you!
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
12/16/2017
Chad EA, CFP ®
Chad EA, CFP ®, Enrolled Agent
Category: Tax
Satisfied Customers: 1,433
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Welcome to JustAnswer!

My name is***** will assist you today.

To avoid the under payment penalty you must withhold enough from your IRA distribution, completed before the end of 2017, to meet any one of the three rules outlined below.

Taxpayers will avoid the underpayment of estimated tax penalty if:

1) Owe less than $1,000 in tax after subtracting their withholdings and credits,

OR

2) If they paid at least 90% of the tax for the current year,

OR

3) 100% of the tax shown on the return for the prior year, whichever is smaller.

Ask Your Own Tax Question

If you withhold enough to make the tax payment equal to or higher than your last years tax liability you will meet standard #3 listed above and no underpayment penalty will be assessed.

Ask Your Own Tax Question

If you have any additional questions at all please let me know! My goal is to ensure you receive 100% satisfaction.

At the conclusion of our conversation please take a moment to rate and accept my answer by clicking on three stars or more. A positive rating of 5 stars or more is always appreciated. Thank you!
Chad EA, CFP ®
Chad EA, CFP ®, Enrolled Agent
Category: Tax
Satisfied Customers: 1,433
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified
Chad EA, CFP ® and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 2 months ago
Thank you!

Thank you for the rating!

If you do have additional questions please let me know

Have a great weekend.

Ask Your Own Tax Question
Was this answer helpful?
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, Enrolled Agent
Category: Tax
Satisfied Customers: 1,433
1,433 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Has the IRS made any ruling on the deduction of state
Has the IRS made any ruling on the deduction of state withholding tax and real estate taxes on Schedule A for 2018. Will there be a requirement to deduct withholding in total before moving to real est… read more
abci168
abci168
Principal
27 satisfied customers
Does the irs allow a payment plan for tax payments that are
does the irs allow a payment plan for tax payments that are over 50k? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I made estimated tax payments in 2017, just found out I
I made estimated tax payments in 2017, just found out I didn't to. Now What … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,122 satisfied customers
I am trying to move about $125k from a traditional IRA that
I am trying to move about $125k from a traditional IRA that is 100% deductible/post tax to a 401k. The plan was to then make a $5,500 non-deductible (after tax) contribution to a Traditional IRA, and … read more
taxmanrog
taxmanrog
Master\u0027s Degree
824 satisfied customers
I sent my tax payment to the IRS before Christmas in the
i sent my tax payment to the IRS before Christmas in the amount of $1219.53. but i received a letter from the IRS informing me that they have not receive.my payment.. I didnt put my SS# ***** my bank … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My withholding exceeds my tax liability for each of the the
My withholding exceeds my tax liability for each of the the first three quarters of 2017. However, in December 2017 I received a taxable gift of $78,000 from which nothing was withheld. I know this mu… read more
abci168
abci168
Principal
27 satisfied customers
I intended to request a traditional IRA distribution in
I intended to request a traditional IRA distribution in 2017. Unfortunately I miscalculated the date and missed the deadline by 1 day. If I request it tomorrow, the financial institution that holds my… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,122 satisfied customers
Can traditional IRAs in a brokerage firm be transferred to a
Can traditional IRAs in a brokerage firm be transferred to a cash account to another fund in the firm. I am 76 and take the required distribution each year. My spouse died in 2916 and I inherited them… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
I have an IRS tax lock on my withholdings and I have tried
I have an IRS tax lock on my withholdings and I have tried for several days to talk to someone and the phone automated service keeps hanging up on me. The one time I spoke to a gentleman he gave me a … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Can one take a distribution from a traditional IRA to pay
Can one take a distribution from a traditional IRA to pay for a dependents college tuition without incurring the 10% early withdrawal penalty?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have about 42k in a traditional IRA, 23k from a before tax
I have about 42k in a traditional IRA, 23k from a before tax pension roll over, 5k in gains, ~8k in constructive, the remainder in dividends. If I want to withdraw 10k for a first time home purchase, … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
IfI cash in a traditional IRA and pay the taxes on it, can I
IfI cash in a traditional IRA and pay the taxes on it, can I spread the income amount out over 5 years ..... to show my income decreased annually? If I show the whole amount as income then my medicare… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
On Social Security, received dividend on traditional IRA
On Social Security, received dividend on traditional IRA want to withdrawn funds from Roth IRA … read more
Chad EA, CFP ®
Chad EA, CFP ®
Enrolled Agent
1,433 satisfied customers
What rate of withholding is applicable for a domestic
What rate of withholding is applicable for a domestic partnership with 2 foreign partners upon the selling of a rental property in US. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Traditional IRA contribution - *Married taxpayers file MFJ
Traditional IRA contribution -*Married taxpayers file MFJ *One spouse covered by retirement plan, one is not *AGI will be over $ 200K for 2017 *Taxpayer that is not covered by retirement plan, contrib… read more
Chad EA, CFP ®
Chad EA, CFP ®
Enrolled Agent
1,433 satisfied customers
I have a question regarding estimating a tax withholding on
I have a question regarding estimating a tax withholding on retirement distribution … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,284 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Please estimate my IRS and CA-540 tax liability for 2017.
Please estimate my IRS and CA-540 tax liability for 2017. Plan to file, "Married filing separately" Gross salary income: $185,000. I will take early withdraw from IRA and 401K funds towards purchasing… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x