[Rick]

Do you have to pay quarterly taxes when you retire? How do you calculate it? Do you do this with turbo tax?
All my income will be capital gains, interest, and dividends

I’m curious about how retirees manage their tax obligations on investment income. Specifically, do they need to make estimated tax payments quarterly on income from capital gains, interest, and dividends?

Or are there exceptions or thresholds that might apply? Any insights or advice on how retirees can stay compliant with tax regulations while managing their investments would be greatly appreciated.

Thanks in advance!

[Scott]

Keep in mind you can use the safe harbor rule which is generally as long as you pay at least 100%/110% of your prior year tax liability (higher % for higher incomes) there is no penalty.

Basically once you do your 2024 taxes you can just base your estimated payments in 2025 accordingly.

Unless something is really going to materially change that should work in most cases.

[Bill]

If you are selling stock, you can just do the withholding then

[Christopher]

Turbo tax can help estimate quarterly taxes (I’ve done this in the past). Each state also has separate limits that may require quarterly estimated taxes.

[Author]

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