Thread: Money Investing megathread extravaganza
View Single Post
Old 03-21-2023, 07:26 AM   #13278
lewdog lewdog is offline
Mod Team
 
lewdog's Avatar
 

Join Date: Sep 2011
Location: Valley of the hot as ****
Casino cash: $-1358100
Quote:
Originally Posted by Buehler445 View Post
Dude.

It has nothing to do with the IRA. The IRA Conversion just creates income. Forget the IRA.

If you're single, but you mark down you're married and have 400 kids on your W-4 and you don't withhold enough, there will be an underpayment penalty.

I did a return that had a guy that got a bunch of ESPP stock that he sold, with the runup he had a pretty big gain. Him and his Wife both had W-2 earnings, with withholdings, but he was underwithheld because the stock sale had no withholdings. So he had an underpayment penalty.

But if you have a bunch of income that doesn't have withholding against it, you either need to make an estimate or pay an underpayment tax.

Seriously. Read the link I posted.
So if I do this conversion but increase my withholdings for the rest of the year, can I avoid paying estimated taxes that way?
Posts: 46,300
lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.lewdog is obviously part of the inner Circle.
     Reply With Quote