I occasionally receive sizable restricted stock grants. Because my marginal rate becomes significantly higher than the 22% withheld from supplemental wages (which I’m unable to increase), I owe a sizable amount of tax which I remit at filing.
Because, as a result, the IRS also considers me to be a high-income individual, I also must remit quarterly estimated tax payments during the following year based upon 110% my current year’s tax liability to avoid penalty - despite no such stock grant existing for the following year, which yields an outsized IRS refund in year two after the grant and creates a sizable cash flow rollercoaster.
Does any means exist to declare the irregularity of the income rather than an annual expectation for which such sizable quarterly estimated tax payments would seem more rational? Or does this simply come with the territory?
Thanks in advance for any constructive insight.
