there are safe harbors for 2023
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There will be no federal penalties for not paying in enough taxes during the year if your withholding
1) and timely estimated tax payments equal or exceed 90% of your 2023 tax or
2) and timely estimated tax payments equal or exceed 100% of your 2022 tax (110% if your 2022 adjusted gross income was more than $150K) or
3) the balance due after subtracting taxes withheld from 90% of your 2023 tax is less than $1,000 or
4) your total taxes are less than $1,000
The lower of 1 or 2 is your required annual income tax payments. 1 is difficult to know until the year end so generally option 2 is the safer option. under the simplified method 25% of the taxes required under whichever option you are using must be paid in each quarter by 4/18, 6/15, 9/15 and 1/15/24. (so if option 1 25% of 90% which is 22.5%) unless you can show otherwise 25% of you annual withholding is assume to occur in each quarter.
failing this and being subject to penalties you can use the annualized installment income method. (see the AI schedule on form 2210)
this method requires knowing your income and deductions thru 3/31, then 5/31, then 8/31, and finally year end which should be the same as the tax return. the income, deductions and self employment income are annualized. taxes are computed on the annualized amounts and then de-annualized. then you must enter certain additional taxes and credits for the period to get to the net annualized tax. this tax is then deannualized (line 20 of schedule AI). your tax payments for each period must equal or exceed these amounts to avoid penalties.
