Name:	MartiniMan -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 9:05:04 AM (updated 7/13/2022 9:27:33 AM)

The news just keeps getting worse.......and now Democrats are talking about raising taxes.  I have to admit after having lived through the 70's that I never thought we'd see inflation like that again and yet here we are.  Expect the markets to drop even more as they know the Fed will respond with additional rate hikes....which will lead to a recession if we are not already there with negative GDP growth in Q1.  Here's hoping Q2 growth isn't negative because two consecutive quarters of negative GDP are the classic definition of a recession.   Think about this....we have had negative real wages for the last 15 months (-4%)......all under Dementia Joe.

So we will have high interest rates, high inflation and a recession at the same time......the stagflation of the 70's all over again.  And Democrats won't do what is necessary to help and their only solution is their usual solution.....raise taxes.  Simply unbelievable.  I personally do not believe a tax hike will get through the Senate but who knows these days.  But no mean tweets........so we got that going for us.

Name:	Talullahhound -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 10:51:31 AM

Well,it's not Joe's fault - he says it the Republican's fault. Just ask him.  

As someone that is about to write out the check for their quarterly tax payment, I am in no mood to hear about raising taxes.  

Name:	MartiniMan -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 11:34:57 AM (updated 7/13/2022 11:36:08 AM)

Since the Putin blame game failed they are back to blaming the party which is not in control of the WH, House or Senate....deeply cynical but they are counting on the govt media carrying their water for them.  But Hound, they're only gonna increase "taxes the rich"!!  Here's what I know for certain, if they did away with withholding and made everyone pay their taxes on a quarterly basis there would be a revolt in the country and no Democrat would ever get elected.   I have made some whopper quarterly estimated payments since I sold my business and I feel your pain.  The small ones were $120K.    I assume yours are mostly distributions from your TSP account.  Am curious if those are taxed at marginal rates or capital gains.

Name:	Lifer -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 11:38:08 AM

Don't know why you would have to make a quarterly payment but if everybody had to actually write the checks to pay the taxes instead of it being withheld a lot of the BS in this country would come to an end.  It is a much starker reality to have the money and have to send in taxes than having it taken before you ever see the money.  People would realize just how much is actually being sent and would be a lot more watchful of how it was spent IMO.  More folks would start demanding acountablillty and responsible spending from those they elect.

The withholding scheme is one of the more genious ideas the democrats ever had, if your goal is to control the populace.  

Name:	MartiniMan -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 11:45:20 AM

Likely due to mandatory or voluntary distributions from retirement accounts.  Those taxes are paid quarterly.  My personal plan is to wait until I have to make the mandatory minimum distributions but that will depend a lot on the tax rates at the time and where I am in the income ranges.  If you have a time of lower tax rates it might make sense to take the max distribution at that time.  Later could hurt.

Name:	Talullahhound -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 3:40:36 PM

I've never touched my TSP yet.  These quarterlies are based on income.... It's not awful and I really shouldn't complain, but it annoys me that it will just go to one of Biden's follies.  I'd just as soon throw it in the street.  

Do you ever wonder if Biden is somehow getting a kickback on all this money he is sending to Ukraine?  

Name:	Talullahhound -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/13/2022 3:49:16 PM

Because my income dictates that I have to pay quarterly.  This is in addition to the federal withholds associated with my retirement. I don't have to take mandatory yearly withdrawls yet, but that will just add to it.  It's just another annoyance.  You might think I would get a big tax refund, but most years I just break even.  I don't have any deductions, so they get me coming and going.

Name:	GoneFishin -	Reply
Subject:	Avoid Estimated Taxes
Date:	7/13/2022 6:09:19 PM (updated 7/13/2022 6:17:34 PM)

I have never paid estimated taxes.

You can avoid the penalties by making sure your withholding and estimated tax payments equal at least 100% of the total tax you paid in the previous tax year if your income is $150,000 or less. If your income is over $150,000, your payments and withholding should equal at least 110% of last year’s taxes.

I have taxes withheld during the year from my pension but less the amount of my IRA withdrawal. In December, I request that the entire withdrawal be withheld and sent to the IRS. A little know fact, withholding is automatically treated as being paid  throughout the year.

Why pay estimated tax and loan Joe your money????????

Name:	MartiniMan -	Reply
Subject:	Avoid Estimated Taxes
Date:	7/14/2022 9:49:53 AM

I'm a little confused by your advice.  You say you can avoid making estimated tax payments by making sure your witholding and estimated tax payments equal 100%/110%.  You have to make estimated tax payments when you have income not subject to witholding, right?  Either way I think making sure your witholding and estimated payments equal last year still means you are making estimated payments.  Witholding is more a W-2 function and doesn't apply to other income like IRA/401k distributions, income from the sale of assets, etc.  My tax accountant is pretty savvy but he hasn't figured out a way to avoid quarterly payments on non-W-2 income.  Please clarify.

Name:	GoneFishin -	Reply
Subject:	HOW I Avoid Estimated Taxes
Date:	7/14/2022 12:01:43 PM (updated 7/14/2022 1:04:07 PM)

To clear up...I can request any amount to be withheld from Social Security, pension, and IRA.

Retirees can avoid  estimated if their  income comes from sources such as Social Security, pension, and IRA  withdrawal assuming they withhold 100% (110% if income over $150,000) of last year's tax bill.

When you request an IRA withhdrawl you have to indicate if you want any of it withheld. I withhold 100% of my IRA withdrawal in December to help  meet the 110% rule. The IRS considers all withholding to be spread out over the entire year.

I assume you cannot cover your estimated with withholding so, yes, you have to pay estimated. Your quarterly estimated could be your  tax paid for 2021 times 110% divided by 25% to avoid a penalty.

If your tax last year was higher than your estimated tax for this year than you would pay the quarterly tax based on this year's income.

This year I, like you, will have a large capital gains tax. Not as large as yours, but large for me. My withholding  will be equal to 110%  of  my 2021 tax. Therefore, I pay no estimated tax. Obviously, I will have a large tax bill in  April for the capital gains.

I am sure your accountant has a handle on it.

As a side note, one year when I was working, one year I realized in late November that I was not going to have enough withheld to avoid a penalty. I went to HR and requested that  94% of my December paycheck be  withheld. I was able to avoid any underpayment of my tax since the IRS considers all withholding to be spread out the entire year.

Name:	MartiniMan -	Reply
Subject:	Understood
Date:	7/14/2022 1:27:00 PM

Have not taken any distributions from my IRA/401k accounts so was not sure how that works.  

Name:	lucky67 -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/14/2022 4:49:21 PM

as a former bond trader & lived through Carter/Volker, etc--IF the FED (in the current climate) raises 100 b.p in this economy in 1 move--all members should be fired for incompetence-you will never see another train wreck like the one that will follow

Name:	MartiniMan -	Reply
Subject:	"Transitory" inflation at 9.1%
Date:	7/14/2022 10:13:22 PM

That is 100% accurate.  The reality is that the Fed appears to want to channel their inner Volcker and raise rates to zap inflation and live with the recession consequences.  The diference today over 1980 is around $200T in more debt than back then.  They do this and Sri Lanka will be repeated in dozens of countries already struggling to service their debt load.  The reality is that years of QE have eliminated their ability to QT without dire consequences world wide.  But it was fun while it lasted and lots of Wall Street types made gazillions and politicians kept their seats.  But like most things, at some point the piper must be paid.