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Get your taxes done using TurboTax
@DianeW777 Appreciate your valuable input. Yes, salary is received evenly throughout the year. However, vested stock and bonus were first quarter with standard taxes taken out though. I have NOT paid any Estimated Tax Payments like on the beginning pages of the Tax Return. Do you actually recommend it? I was always ok having a balance due for Federal as I saved for it. Avoiding the $3322 penalty is worthwhile though.
Can dividend and interest income affect an Underpayment Penalty significantly too?
Would 2022 income (w/ $106 Underpayment Penalty) also affect the 2023 Underpayment Penalty amount?
You mentioned:
"Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year."
How do you go about paying $110%+ of your total tax from the previous year? Through Estimated Payments with values higher than the four quarter Tax Return recommends maybe???
Thank you!