Roth IRA Conversion (Part 5) | Calculate Estimated Taxes | Avoid Underpayment Penalties скачать в хорошем качестве

Roth IRA Conversion (Part 5) | Calculate Estimated Taxes | Avoid Underpayment Penalties

In this video I demonstrate How To Calculate Your Estimated Tax Payments and avoid getting hit with Underpayment Penalties. This is particularly relevant when you have uneven income during the year from sources such as Capital Gains, Business Income and Roth IRA Conversions. Personal Tax Planning Template Available Here: https://numbercrunchnerds.systeme.io/... 00:00 Introduction 02:28 IRS Default Assumption re How You Generate Your Income 3:26 Wage Income is Earned Evenly Throughout the Year 04:28 Roth Conversion Income Generated in Q4 of the Current Year 05:24 The Reality of Income Generation vs the Pro Rata Assumption of Tax Law 06:25 The Timing of Transactions is Not Reported to the IRS 07:25 The Form 1099-R Shows Gross Distribution but not Timing of Distributions 08:36 Calculating Estimated Taxes by Quarter 10:34 Estimated Taxes on Roth Conversion Income 11:45 Income and Estimated Tax Payments are Assumed to be Pro Rata 13:04 The US Tax System is "Pay as You Go" 14:00 How Can Estimates be Due on Income That is Unknown 15:24 How to Elect the Annualized Income Installment Method 16:57 What Does Electing the Annual Income Method Mean 17:25 This Election Helps You Avoid Underpayment Penalties on Estimated Taxes 20:45 Remember to Elect the AIIM for Uneven Income in the Third & Forth Quarters 21:28 You Have to Tell The IRS When Your Income Was Generated 21:54 Form 2210 What Triggers the Underpayment Penalty 22:32 Business Income, Seasonal Income, Capital Gain can All be Annualized 23:55 How to Avoid the 2210 Penalty in TurboTax 24:59 Calculating Estimated Tax Payments by Quarter 26:15 Reporting Income in Quarterly Installments to Avoid Under Payment Penalties 27:10 Turbo Tax Entry of Cumulative Annualized Adjusted Gross Income (AGI) 30:05 How to Make the Election in TurboTax 30:59 How Much Estimated Tax Needs to be "Paid In" 31:18 The 90% of Current Year Safe Harbor for Estimated Taxes 31:46 The 100% (or 110%) of Prior Year Safe Harbor for Making Estimated Tax Payments 34:25 Calculating Estimated Tax Based on the Prior Year is "Safest" 35:55 Example 1 - Calculating Estimated Taxes on Roth Conversions 37:29 Which Safe Harbor Method Results in Lower Estimated Payments 39:13 Applying the 90% Threshold to Projected Tax 40:41 When Are Estimated Taxes Due - April 15, June 15, September 15, January 15 43:58 Calculating 90% Safe Harbor Estimates with 2024 Tax Brackets 46:50 Risk of Underpayment Penalties with Safe Harbor Estimates 47:38 Adjusting Your Income Projections Mid Year 50:09 Being Underpaid vs Giving the Government an Interest Free Loan 53:04 Pay Estimated Taxes Too Fast or Earn the Risk Free Rate of Return 53:45 Uneven Income Earned Earlier in the Year (Q1 and Q2) 56:31 Surprise Income from Brokerage Capital Gains in Q1 and Q2 58:21 Example 2 - Estimated Taxes with Carryovers and Withholding 59:32 Using the 110% Safe Harbor Threshold 1:00:27 Where to Find Over Payments Applied on Form 1040 Tax Return 1:02:36 Withholding on W-2, 1099R, SSA 1099, 1099 CONS and other Tax Forms 1:06:32 Withholding Applies Evenly to the Quarters (it's deemed Pro Rata) 1:10:25 How Withholding Can Help You Avoid Underpayments on Q1 Income 1:12:42 Example of How Withholding Occurring in Q4 1:16:21 Paying Tax Using Withholding vs Outside Sources of Funds 1:17:42 Roth IRA Contribution Limits - Planning Considerations 1:18:42 Estimated Tax Calculator #taxplanning #taxtips #rothira #rothconversion