Get your taxes done using TurboTax

There will be no federal penalties for not paying in enough taxes during the year if withholding and

  1. timely estimated tax payments equal or exceed 90% of your 2023 tax or
  2. 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

 

 

you do have the following options

A) for withholding the default is 1/4 of the annual total  is deemed paid each period, you can use actual amounts but if for one period it must be for all

B) you can use the annualized income method if that will produce a lower penalty

 

if you don't meet any of the exceptions in 1 to 4 above and neither options A or B eliminate the penalty then you will owe a penalty. Based on what you say is the cause, you don't have a reasonable cause for not meeting the exceptions. 

 

state laws differ