4:43pm -0000 06/11/26 Sherlock <[email protected]> wrote:

>Interesting.  We use scheduled transactions to project future income and a 
>spreadsheet to estimate tax payments.

I did a tax projection in November, then adjusted withholding from RMD which 
was taken end of November or early December. Withholding avoids the 
underpaid estimated tax penalty.

If I were terribly clever, I could probably figure out a way to project 
taxes as I perform data entry of every item with tax implication but that's 
a lot of work for not a lot of benefit. Mostly I make sure to withhold 
enough based on last year's taxes, then write a check for the remaining tax 
liability on April 15.

Like you, I'm using a spreadsheet. I use it for the actual tax computation. 
I wrote it for the two complicated worksheets, Taxable Social Security 
Benefits and Qualified Dividends, and then used it for all tax calculations.

> On 6/11/26 2:02 PM, Adam H. Kerman wrote:
>> 2:49pm -0000 06/11/26 Sherlock <[email protected]> wrote:
>>
>>> We track distributions from traditional retirement accounts as deferred
>>> income by adding a pair of balanced splits to the transfer transaction.
>>
>>> For example:
>>
>>> Assets:Banking:Checking             100.00
>>> Assets:Investing:IRA                        100.00
>>> Income:Deferred                     100.00
>>> Income:Deferred:IRA                 100.00
>>
>>> Income:Deferred:IRA is flagged as "Tax Related" with the "F1099-R IRA total
>>> dist - taxable" TXF category.
>>
>> Your accounts are going to balance with this approach, sure. But I'm
>> entering RMD as a liability when it becomes known, with a January 1 date, to
>> track it within the bookkeeping program as there are taxes to pay.
>
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