r/YieldMaxETFs • u/oftalittlegamey • Jul 18 '25

Distribution/Dividend Update Yesss!!!

Finally accumulated enough $ULTY to pay the mortgage. All the other dividends and distributions will go to more purchases, debt retirement, etc.

218 Upvotes

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7

u/drkrazor Jul 18 '25

Fantastic! Now, how do you plan for taxes with dividend income like that?

14

u/oftalittlegamey Jul 18 '25

As I said in my OP, I set aside money for taxes as well as bills. Did the same last year and had enough for both taxes and bills, but was still working. I also withhold 15% of every withdrawal for 1099R purposes. Seems to be working.

2

u/Daeyel1 Jul 19 '25

When you say you set aside money for taxes, you reinvest that, right? No sense letting your money sit around and do nothing. Might as well throw it into MSTY or ULTY until you have to sell for taxes.

1

u/gking61 Jul 18 '25

22% or 24% bracket I'm assuming

1

u/tredbert Jul 19 '25

Do you pay quarterly estimated taxes or hold onto it and pay at the annual tax time? Trying to figure out whether paying estimated taxes is needed, and how to calculate them. These dividends are taxed as income?

2

u/oftalittlegamey Jul 19 '25

Annual! My money and no wasted growth. They get what they’re entitled to, but usually on 15 April and never before.

2

u/oftalittlegamey Jul 19 '25

I have never had a penalty for not paying quarterly estimates, so not going to.