Depending on what your total income is, the 22% withholding would normally be sufficient to cover your tax liability. To avoid a penalty for late payment of tax, you simply need to pay in 100% of your tax liability from the previous year on a quarterly basis. So, you can look at line 24 on your 2024 Form 1040 and divide that number by 4. That is the total amount of tax you need to pay in, between withholding and estimated taxes, on a quarterly basis in 2025 to avoid a penalty for late payment of tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
