Thanks. My withholdings to this point from my W4 and deducted from my severance are more than 25% of the total expected bill so there shouldn’t be any penalties as I just got the stock windfall just 3 weeks ago. The severance only got paid about 1 week ago, which would be the next quarter due in Sept. If I do somehow underpay the penalty is a no go as the penalty interest rate is 7 or maybe 8% so that’s not worth it. I can easily get 4% but not a guaranteed 8%. TurboTax already calculated the estimated final 3 payments but again if I don’t pay a commensurate tax on this big income (20 years of stock ownership and 6x my normal salary) for this quarter I don’t think I can do the quarterly estimated payments that TurboTax suggests without a penalty. TurboTax is not equipped to handle uneven income for the purposes of tax estimation. I get the feeling that if I do the final 3 estimated payments I might be fine with no penalty but documentation seems to indicate otherwise.
