We have usually paid our estimated taxes by calculating 110% of the previous year's taxes, and making sure we pay that same amount. However, last year we sold a large amount of stock, and therefore owe a lot of taxes for 2024. So to try to avoid penalties for 2025, I want to try to pay at least 90% of this year's taxes. Can I do this by looking at our paycheck?
The idea was to add the RSU + Salary on 3/31/25 paycheck, and calculate 35% of this amount. Compare it to the YTD Fed Income Tax paid, and if income tax paid is less, make an estimated tax payment of the difference.
Is this an acceptable way of estimating taxes?
Do I need to account for the "Employer HSA Contribution" or "Group Term Life" which is also listed under the Earnings portion of the paycheck?
We always receive 1099-s for interest and dividends as well...should I add the amount received by 3/31 to the above salary+RSU amount? Or can I wait until the end of the year to add the yearly amounts?
Most all of our income is from this paycheck, which is a salary and RSU stock vested quarterly. The company takes out 22% of the stock for taxes, but we are in a higher tax bracket. We usually take the standard deduction.
Or if there is an easier way to calculate this in TT, let me know.
