Estimated Taxes in Retirement - Managing Tax Bills in Retirement

For most retirees, you won't need to pay estimated income taxes annually. That's one less thing to do each quarter! However, there are a few circumstances when paying estimated taxes may be necessary
Capital gains-- if you have a large brokerage account and are routinely selling appreciated stocks, you may have a large tax bill due for capital gains
Dividends/interest-- similarly, if your bond funds and stocks distribute lots of dividends or interest, you may need to pay in more for income taxes.
Roth conversions-- if you perform a Roth conversion this year, some amount of tax will be due.
Use a tax program like Holistiplan to mock up a 1040 return. A good estimate will show how much your ordinary income and capital gains taxes are, compared to how much you are regularly withholding for taxes.
Adjust withholding for things like pensions, SS, and annuities to make this easier-- you could potentially withhold enough from your other sources of income.
OR, look into the IRS' tools for paying estimated taxes. They're relatively simple to do, and you don't have to mail a paper check.
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