I know for sure that our last year's income will be MUCH higher than this year's income. So, I definitely don't want to use the 110% of last year's tax method.
Can you explain the flaws of my method from my original post?
From the 3/31 paycheck, if I add my salary + income from RSUs, I get a number. If I take 35% of this number, I find it is much higher than the Fed Income Tax that has been withheld YTD.
I would estimate that I can pay this difference as my 4/15 estimated tax.
Can I then do the same with my 5/31 paycheck?
What am I missing in these equations?
Thank you!
