Retirement Taxes –quarterly estimates?
The wife and I recently retired, have reached full retirement age and have a “termination pkg” through 2026. We will no longer pursue employment going forward, as we have fortunately saved appropriately and will begin taking Social security in 2027; My question is regarding paying our income taxes beginning is 2027; Are we required to pay income taxes quarterly since we are no longer will pay “regularly” through employer, etc. I’ll appreciate your advice and any recommended literature for my thorough edification, to ensure adherence to applicable rules, Thanks much, MJ
Terry Says
If your ONLY income is Social Security, you can have money withheld (perhaps 20%) from each of your checks. But if you have additional income — from dividends, sale of stocks, rentals, etc — then you should contact your accountant about setting up a plan to pay quarterly estimated taxes online.
Technically, the first year you are safe from penalties if you paid in 100% of the taxes owed last year, or 90% of the taxes you will owe this year.
But you’re smart to do a review of what your 2026 income will be –above and beyond SS — and figure out whether a quarterly tax estimate makes sense.
