File Quarterly Tax or Wait Till Next April?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
ltrmc02
Posts: 6
Joined: Fri Feb 01, 2019 7:25 pm

File Quarterly Tax or Wait Till Next April?

Post by ltrmc02 » Fri Jul 12, 2019 2:41 am

I just did a partial Roth conversion last month so I owe a pretty good chunk to our favorite uncle. Does anyone know if I should do a quarterly tax or will it be fine to wait till the first of next year to file my 2019 taxes and pay the amount due then?

I'm currently unemployed and have no earned income so far this year, only interest, short term capital gains and this Roth conversion.

TaxingAccount
Posts: 75
Joined: Sun Mar 17, 2019 8:34 am

Re: File Quarterly Tax or Wait Till Next April?

Post by TaxingAccount » Fri Jul 12, 2019 2:49 am

If you don't make an estimated tax payment this quarter you will be penalized. Also if you don't want to be penalized for missing your first two quarterly tax payments, you will have to use the annualized income installment method to prove your income each quarter which is a lot of work to calculate.

User avatar
FiveK
Posts: 6994
Joined: Sun Mar 16, 2014 2:43 pm

Re: File Quarterly Tax or Wait Till Next April?

Post by FiveK » Fri Jul 12, 2019 6:53 pm

See About Form 2210 | Internal Revenue Service if you want to understand the details of determining how much you should pay and when.

bernoulli
Posts: 91
Joined: Sat Feb 02, 2019 1:13 pm

Re: File Quarterly Tax or Wait Till Next April?

Post by bernoulli » Fri Jul 12, 2019 7:14 pm

Best to pay the quarterly tax as soon as you have income. The penalty can be steep. Even if the penalty is not a significant amount of money, why pay anything other than the tax you owe?

Post Reply