TurboTax has a great tax estimator to determine your Federal tax liability: Tax Caster
The IRS offers two "safe harbor" methods for determining whether you are subject to a penalty. If you meet one of these safe harbor amounts, the IRS won't charge an estimated tax penalty, even if you owe more than $1,000 at the end of the year.
The requirements are that you pay:
- 90% of the tax you owe for the current year. Estimate what you may owe and pay at least 90% of this amount by making timely quarterly estimated tax payments or through paycheck withholding.
- 100% (or 110%) of last year's tax bill. Pay 100% of the tax shown on your prior-year tax return before applying estimated payments, withholding, or refundable tax credits. If your adjusted gross income is more than $150,000 (or $75,000 if you're married and file a separate return from your spouse), the safe harbor is 110% of your prior-year tax.
If you’re at risk for an underpayment penalty next year, we'll automatically calculate quarterly estimated tax payments and prepare vouchers Form 1040ES for you to print. You can also remit payments directly to the IRS. Additional estimated tax payment options, including direct debit, credit card, cash, and wire transfer, are available at IRS payments
Have an amazing day. Evelyn M (CPA 20+ years)
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