Background info:
S-corp owned by Husband+wife.
Husband and Wife are the only employees of the S corp.
Wife also has another low paying regular job which pays every 15 days.
However, my S corp just makes one LARGE payroll run on Dec 31.
Here are expected 1040 numbers for 2021.
Taxable Wages = 245k (out of which 230k was paid on Dec 31)
Dividends = 75k
Schedule K = 15k
Capital gain = 0
Total Taxable income = 300k
Approx. Tax = 60k
Estimated Tax payments made so far = 80k
Questions
Q1) As you can see, my Estimated Income Tax payments more than cover my income tax liability. However, it seems I still need to hold approx 40k in federal tax from my Dec 31, 2021 payroll. Can I withhold just $0 income tax? Note: I will withhold and pay appropriate FICA.
Q2) The numbers will remain the same in 2022. How can I pay more via Estimated taxes instead of Withholding? (My reasons for wanting to do this may complicate the discussions but if you think it is necessary, I can elaborate provided you promise not to laugh).
Edited to clarify that this question is only for Income taxes. I will withhold and pay FICA. Also, I am not trying to avoid Income Tax. I am just trying to pay via ES1040 instead of withholding.
