You are totally confused. Most of what you've been told is irrelevant, especially "multiplied by .9235, then multiply that by .029".
The simple formula is look at your previous year tax liability. Divide that number by four and send in four equal quarterly payments.
Estimated tax payments are NOT required at either the federal or state. But, you may be subject to an underpayment penalty, at tax time, if you did not pay enough through withholding or estimated payments.
On the federal return, an underpayment penalty is due if you owe more than $1000 at tax time. For PA, the penalty is due if you owe more $246. The penalty is small. There are people, who just pay the penalty rather that "bother" with estimates.
TurboTax (TT) can prepare the quarterly payment vouchers. In your 2020 software, enter at:
Federal Taxes or Personal (H&B version)
-Other Tax Situations
-Other Tax Forms
-Form W-4 and Estimated Taxes - Click the Start or Update button
On the next screen answer No to the W-4 question
There's a similar section in the state program, usually at a page titled "A few things before we wrap up your taxes" (I'm not specifically familiar with the PA progrm).
To avoid the penalty, you should make estimated tax payments for the current tax year if both of the following apply for federal:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (110% if your income will be more than $150K) .
If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”
For PA rules, see: https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/2021/2021_rev-413i...
