How much tax is due for maxing out the 24% bracket in 2025? (Estimated Tax Payment Question)

Thank you so much! That's exactly what I was looking for. I couldn't find this calculation anywhere online. So if I'm planning to max out the 24% bracket with Roth conversions, I'll need to pay about $81,504 total for the year, or roughly $20,376 per quarter. That's super helpful. One follow-up question: My 2024 tax liability was much lower since I only retired mid-year. If I choose to pay based on my previous year's tax liability instead, would I still need to "true up" when I file my 2025 taxes next year? Or would I avoid any penalties even if I end up owing a lot more?

You won't face penalties if you pay 100% of your 2024 tax liability (or 110% if your AGI was over $150,000) through estimated payments, even if you end up owing more when you file. That's called the "safe harbor" provision. You will still need to pay the remaining balance when you file your 2025 return in 2026, but you won't face underpayment penalties. Many retirees doing Roth conversions use this strategy in their higher income years. Just be prepared for a potentially large payment when you file your actual return.

Does it handle state taxes too? I'm doing Roth conversions but my state treats retirement income differently than the feds, and I'm constantly miscalculating my quarterly payments.

I'm skeptical of these tax planning tools. How does it handle changes in tax law? The TCJA provisions expire after 2025, which would completely change the brackets. Does the tool account for that?

Yes, it handles state taxes too. You just input your state and it applies the relevant state-specific rules for retirement income. This was actually one of the most helpful features for me since my state has some weird retirement income exclusions that I was constantly calculating wrong. For tax law changes, the tool explicitly asks about which tax assumptions you want to make for future years. You can model what happens if TCJA expires, gets extended, or even create custom scenarios. I've run multiple versions to see how different legislative outcomes would affect my conversion strategy. It's been pretty robust for "what-if" planning.

How does this service actually work? I don't understand how they can get you through faster than just calling the IRS directly. Sounds too good to be true.

No way this works. I've tried everything to get through to the IRS and sometimes spent 2+ hours on hold only to get disconnected. If this service actually worked, everyone would be using it.

It works by using an automated system that navigates the IRS phone tree and waits on hold for you. They don't have a special line or priority access - they're just waiting on hold so you don't have to. Once they reach a human, they call you and connect you directly to the IRS agent. I was skeptical too, but I was desperate after multiple failed attempts. The difference is you don't have to physically stay on the phone during the hold time. You can go about your day, and they call you when an agent is ready. Definitely not a scam - the IRS agent I spoke with was clearly a real IRS employee who had all my information and answered my questions about estimated tax payments.

That's a good suggestion about adding a buffer. I hadn't considered that. How do you handle the timing of your Roth conversions throughout the year? Do you do them all at once, or spread them out quarterly to match when you're making the estimated payments?

I spread my conversions throughout the year rather than doing them all at once. This gives me more control and helps with cash flow since I'm making estimated tax payments quarterly anyway. I usually do slightly larger conversions in the first half of the year, especially if the market is down. This gives those converted amounts more time to potentially grow tax-free in the Roth. By December, I have a clearer picture of my exact tax situation and can make a final conversion that precisely hits my target bracket maximum.

Most tax software isn't designed for future year planning like this. I've had good luck with Excel spreadsheets that you can update with the new tax brackets each year. The IRS usually announces inflation adjustments for the upcoming year around October/November.

Thanks for confirming what I suspected! The tax software just isn't built for this kind of forward planning. I guess I'll need to build my own spreadsheet or look into some of the dedicated retirement planning tools mentioned in this thread.