Are you making estimated tax payments just because your tax software told you to? Before you write that check to the IRS, watch this. John Mason breaks down why blindly following estimated tax payment slips can be a costly mistake for federal employees and retirees.
If you had a major income event last year or your 2026 looks different from 2025, those quarterly payments might not make sense anymore. In this video, John covers:
✅ Why estimated tax payments may not be necessary this year
✅ Common situations where you actually need them (multiple income sources, pensions, Social Security, IRA distributions)
✅ A smarter alternative: adjusting withholding on one income source instead of making quarterly payments
✅ The withholding advantage: it’s deemed to have been there all year (avoiding late payment penalties)
✅ Pro tips for inherited IRAs, RMDs, and applying tax refunds forward If you’re juggling multiple income sources or planning Roth conversions, tax harvesting, or retirement in 2026, you need a tax projection, not a guessing game.
Watch next:
Why Federal Employees Should Consider a Donor Advised Fund – https://youtu.be/yLlTUNLr5Dw?si=NyHeFQ8oJzoc3prV
Federal Employee Tax Planning is a Year-Round Sport- Insights and Collaboration with Rachel Meredith – https://youtu.be/FyIT1ZqZw8o?si=VZCXoBIB5_GDbzi_
📅 Schedule an Intro Call: https://www.masonllc.net/get-started
🎙️ Federal Employee Financial Planning Podcast: https://www.federalemployeefinancialplanning.com/
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📥 The Federal Employee’s Guide to Survivor Benefits: https://www.masonllc.net/federal-employee-guide-to-survivor-benefits/
Time Stamps:
01:04 – When payments could be wrong
02:00 – Why people need estimated tax payments
02:40 – Multiple income sources
03:25 – Strategic planning meetings mention
04:11 – Tax planning vs reacting
04:57 – Adjusting withholding method
06:14 – Timely payment issue
07:01 – IRA distribution tips
About Mason & Associates:
Mason & Associates is a fee-only financial planning firm specializing in federal employee benefits under FERS and CSRS. Our team of CFP®, CPA, and EA professionals helps federal employees and retirees optimize their benefits, plan for retirement, and minimize taxes. Investment advisory services offered through Mason & Associates, LLC. This content is for general educational and informational purposes only and should not be considered specific investment, financial planning, tax planning, legal, or other professional advice.