From The Motley Fool · Dana George · · 40s
Retirees Check Tax Withholding Now
Retirees risk unexpected tax bills if withholding is missed.
In brief
Retirees risk unexpected tax bills if withholding is missed. Retirees should check tax withholding to avoid 7% penalty on underpayment. Originally reported by The Motley Fool.
Why retirees owe taxes
Retirees may have multiple income streams including Social Security and pensions that add up quickly.
Tax penalty risk
Underpayment penalties of up to 7% can accumulate if taxes are not paid by April 15, 2027.
Tax bill timeline
Taxes due by April 15, 2027 for 2026 payments with quarterly installments due April 15, 2026 through January 15, 2027.
Safe harbor options
Skip penalty if less than $1,000 after credits or paid at least 90% of current year's tax due.
At a glance
Retirees should check tax withholding to avoid 7% penalty on underpayment.
