Personal Investments • Estimating Tax on TIPS in Taxable

I had too much cash from maturing CDs and decided to build a TIPS ladder in taxable. This is spread between accounts of DW and I. I'm fine with paying phantom tax out of other taxable dollars. I believe Fido will give us the forms that tell us what is taxable during the annual tax forms handout.

The ladder is not an equal amount each year but fills gaps where I don't have enough cashflow coming in. 2030 and 2031 I need nothing from TIPS.

I'm trying to get an idea on how to best estimate taxable income for estimated taxes. I don't need to be exact. For estimating purposes let's assume yield on all of these is 2.2 (some is 1.9, some 2, a little is 2.2, but 2.2 is above the average). I realize that it will depend on what CPI-U is but looking for a way to get ballpark estimations.

I realize many of you would never put TIPS in taxable.

Any pointers on best way to guess are appreciated. I thought about just guessing a percentage of TIPS holdings that would likely be over but not too much over but decided it might be worthwhile to get the input of those smarter than me.


Year CUSIP #Bonds
2027 91282CEJ6 87000
2028 91282CGW5 25000
2029 91282CKL4 40000
2032 91282CDX6 25000
2033 91282CGK1 25000
2034 91282CJY8 25000

Statistics: Posted by Dufus — Sat Dec 21, 2024 9:17 am — Replies 1 — Views 96

---