2025 Quarterly Estimated Taxes

Forum|Forum|11 months ago
April 14, 2025
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Trying to figure quarterly estimated tax for 2025.

Under Other Tax Situations / Enter Payments You've Already Made:

I assume SS tax that has been withheld YTD (we are retired) should be entered in the boxes labeled Federal Income Tax Withheld (Year to Date)?

Asking because the wording in TT refers to tax withheld from paychecks.

Thanks.

Mitzy20Author

Hello,

We are retired and receive SS with 22% tax withholding. So far we have received SS benefits for Jan - Mar, 2025.
We also expect to take IRA RMDs which are set up for 22% withholding. The RMDs will likely be done later in the year. Other than than, we have 1099-INT and 1099-DIV income also expected at end of the year, with no withholding. We are estimating all income except SS (which is not estimated) will be roughly the same as 2024.

How to figure quarterly payments that are evenly - or close to evenly - spread across quarters, based on this information, to avoid penalty?

Thanks

ThomasM125

Depending on what your total income is, the 22% withholding would normally be sufficient to cover your tax liability. To avoid a penalty for late payment of tax, you simply need to pay in 100% of your tax liability from the previous year on a quarterly basis. So, you can look at line 24 on your 2024 Form 1040 and divide that number by 4. That is the total amount of tax you need to pay in, between withholding and estimated taxes, on a quarterly basis in 2025 to avoid a penalty for late payment of tax.

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