5. Timing Tax Payments
While Tax Day usually takes place on April 15th (the next one will be on April 18th, 2023, to accommodate Emancipation Day), taxes are actually due as income is being earned, and employers have become the primary tax collectors in the country by withholding taxes from our wages.
Once you retire, you’re out of that system, so it’s your responsibility to ensure that the IRS receives its due when it’s due. If you delay the payment and send the check the following year, you will be subject to penalties and interest.
You have two options for getting the job done:
Withholding. In your golden years, it’s generally up to you to pay your taxes. When it comes to 401(k)s, traditional IRAs, and pension withdrawals, you can stop income tax withholding by filing a Form W-4P. For periodic payments (those made at regular intervals over a 12-month period), withholding is subject to the same rule as withholding for wage payments.
For traditional IRA distributions and other non-periodic payments, the plan’s custodian will withhold income tax at a flat rate of 10% unless you claim a different rate or block withholding together. Also, rollover distributions are subject to mandatory 20% withholding — but keep reading to find out how you can avoid this flat rate.Â
Withholding income tax from your Social Security benefits isn’t mandatory unless you specifically ask for it. You can choose to have 7%, 10%, 12%, or 22% of your monthly benefit withheld by filing a Form W-4V.
Quarterly estimated tax payments. This is the second option for making tax payments. This alternative requires you to make estimated payments if you expect to own more than $1,000 in federal taxes. Otherwise, you may face a tax penalty for underpayment.
11 Responses
False pretense.
Where in Cleveland Ohio can I get a reasonable deal on an older SUV?
What type of exercise do you recommend.
Hello,
I am retired. I am helping my disabled son I have a driver license but I have no car because cannot afford a car. My only income is Social Security and $300 for food stamps. For my son and myself. Housing is my biggest issue we live in a unit with a attached garage, It was a dog house. I need to know how I can save money make money.
Kathy can you be a caregiver for seniors? there is a huge need out there for honest and compassionate people to help seniors in their homes. some CNA courses are consolidated and affordable you might not even need one for domestic chores maybe work 4 hours per day so you don’t get worn out?
IN CALIFORNIA THEY PAY PARENTS TO BE THE CAREGIVER!
That’s me
You should have the story on one page not 15000!!!!
I am now 65 and the government has done so much wrong i can not even begin to think about retirement. This is so sad. Looked forward to the day with pride my whole life. Began working in the fields with my dad when I was a kid. First real job 15. Been working my ass off for 50 years. The politicians don’t care. They have it made by taking our money.
I am truly sorry William & I get it. I’m a retired school bus drover. Retired only because I had literally broke my back, I didn’t make it retirement age. I have a son that’s on the autistic spectrum whose father he never met. He was a Vietnam vet, who came home physically, not mentally. He was hit & killed by kids drag racing.
This government never gave him or his son the SS or VA benefits they were entitled to. Worked my fingers to the bone. I finally won the SS benefits where 3 lawyers couldn’t (my son was just a number), VA I’m still working on. I just don’t have another 32 years to fight. That’s how long it took to win. Absolutely ridiculous. But let an illegal come in & they get free everything & yet my son lost his dad in a war we had no business in. Go figure, right! I get it. You take care. God gives what we need. Been there, he does come through.
i am retired and receive ss but what i want to know can i file on my interest i have gained thanks