Many retirees have to pay taxes quarterly, usually in April, June, September and January.
The idea is that each retiree should estimate the amount of taxes they will pay the next year. Use Form 1040-ES to figure estimated taxes.
Underpayment on these quarterlies results in a stiff penalty. One way to avoid the penalty is to take your previous year's tax bill and divide it by four. The IRS accepts this as a valid estimate.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
