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Get your taxes done using TurboTax
Any type of taxable income can affect the computation of the underpayment penalty.
However, If most of your income is spread evenly throughout the year and you are primarily paid as an employee, and if you think your withholding in 2024 might be just a little bit short of what you need to avoid a penalty next year, you can revise your W-4 with your employer to take out a specific additional amount each pay period to cover the difference. See step 4c on Form W-4 (2024). This would be easier than setting up quarterly estimated payments if most of your income is from wages.
See this tax tips article for more information about revising Form W-4.
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March 25, 2024
2:42 PM
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