fusili3
New Member
- Jurisdiction
- California
I was given 5 us savings bonds 30 years ago. I cashed them on the 1st of Sept, as they had matured.
The taxable interest was $78680. I had 0 income in 2020 and 2021 and 0 income, besides these bonds, in 2022.
LINE 37 OF THE 1040, THE tax that I will OWE (I AM SINGLE WITH 0 Dependents and am under 65 years of age), based on the 2021 tax table, is $10296. I have a couple of questions.
1. The 2021 tax book says, 'You may owe estimated tax penalty if Line 37 is at least $1000 and is more than 10% of the tax shown on my return." BOTH of those are true, but
2. the book also says that AN exception is made and I will NOT OWE the tax if my 2021 tax return was for 12 full months (IT WAS) and I had NO tax shown on LINE 37 (I did not have any tax or any income that year).
I am hoping that I just owe the $10296 and no penalty. Am I correct?
3. in 2023 I also will cash 5 bonds for the same amount with NO OTHER INCOME.
WILL the IRS charge me an estmated tax penalty then?
4. WILL I have to pay estimated tax quarterly?
5. Should I mail the irs an estmated payment now, of say, $10,000, to avoid any future problems?
--now, for my california tax return, I have a different situation because US savings bonds are not taxable.
6. DO I have to file a california tax return to show that I had $78680 in income, but then I subtracted all $78680 for a net income of 0? My point is that, if my income is 0 after the subtraction of the bond, do I need to spend the time filling out the form and sending it in? I do not want the state to accuse me of failing to file, but if I owe 0, then what is the purpose of filing, creating paperwork, and making the state read a return that has no owed tax and no refund?
thanks
The taxable interest was $78680. I had 0 income in 2020 and 2021 and 0 income, besides these bonds, in 2022.
LINE 37 OF THE 1040, THE tax that I will OWE (I AM SINGLE WITH 0 Dependents and am under 65 years of age), based on the 2021 tax table, is $10296. I have a couple of questions.
1. The 2021 tax book says, 'You may owe estimated tax penalty if Line 37 is at least $1000 and is more than 10% of the tax shown on my return." BOTH of those are true, but
2. the book also says that AN exception is made and I will NOT OWE the tax if my 2021 tax return was for 12 full months (IT WAS) and I had NO tax shown on LINE 37 (I did not have any tax or any income that year).
I am hoping that I just owe the $10296 and no penalty. Am I correct?
3. in 2023 I also will cash 5 bonds for the same amount with NO OTHER INCOME.
WILL the IRS charge me an estmated tax penalty then?
4. WILL I have to pay estimated tax quarterly?
5. Should I mail the irs an estmated payment now, of say, $10,000, to avoid any future problems?
--now, for my california tax return, I have a different situation because US savings bonds are not taxable.
6. DO I have to file a california tax return to show that I had $78680 in income, but then I subtracted all $78680 for a net income of 0? My point is that, if my income is 0 after the subtraction of the bond, do I need to spend the time filling out the form and sending it in? I do not want the state to accuse me of failing to file, but if I owe 0, then what is the purpose of filing, creating paperwork, and making the state read a return that has no owed tax and no refund?
thanks
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